Paxos has unveiled the updated USDH Proposal V2, offering new opportunities for stablecoins, including partnerships with PayPal and Venmo as well as incentives for ecosystem growth.
PayPal Partnership and Global Payment Access
The integration of USDH with global payment systems PayPal and Venmo allows users easier access to stablecoins by removing transaction fees. This partnership promotes the potential for mainstream adoption of stable currency in the market. For Paxos, this collaboration builds on its prior role in powering PayPal USD, as it now extends incentives to align HYPE usage.
Revamped Rewards and Incentive Alignment
A primary innovation under Proposal V2 is its redesigned reward system. Paxos shall generate income only when the total value locked in USDH crosses $1 billion. Once the TVL crosses $5 billion, the revenue share will be capped at 5%, paid in HYPE tokens. This structure provides strong incentives for the growth of the Hyperliquid community.
Global Scaling and Regulatory Position
Proposal V2 also emphasizes Paxos' ambitions for global expansion. The company asserts that it is the only issuer capable of legally offering stablecoins in Europe under the MiCA framework. Paxos holds licenses in the U.S., Singapore, Abu Dhabi, and other regions, ensuring a strong compliance base.
Paxos' updated USDH Proposal demonstrates the company's commitment to integrating with global payment systems, revamping rewards, and adhering to regulatory standards, positioning it as a noteworthy player in the stablecoin market.
