Paxos announced its intentions to promote the USDH stablecoin with the backing of PayPal, aiming to attract millions of users through its payment system.
Reinvesting Revenue to Grow USDH
Paxos assured validators that revenue from USDH would be reinvested into the ecosystem until the stablecoin reaches a $1 billion footprint. Even after reaching this threshold, Paxos's share would be capped, tying its success directly to Hyperliquid's performance.
Rival Bids Intensify the Contest
The market is witnessing intense competition. Frax Finance proposed to anchor USDH with its frxUSD, supported by BlackRock's BUIDL fund. Other participants like Agora, Rain, and LayerZero have expressed readiness to return 100% of revenues back to the ecosystem.
Positioning Hyperliquid as a Decentralized Solution
Paxos aims to establish Hyperliquid as an enterprise-grade liquidity layer, allowing brokerages and fintechs to connect through builder codes. There are also plans to launch an 'Earn' product built on USDH.
Paxos's strategy with PayPal at its core highlights the company's ambition to position USDH as a key player in the decentralized finance space, while competition for the stablecoin market intensifies.
