Paxos is working on issuing USDH, Hyperliquid’s first native stablecoin. To this end, it has filed a proposal to issue the stablecoin, promising to allocate 95% of interest earnings from the USDH reserves toward HYPE token buybacks. These tokens will now be redirected to users, validators and partner protocols. Paxos Acquires Molecular Labs The blockchain infrastructure plans to make the token fully compliant with the Guiding and Establishing National Innovation for US Stablecoins Act ( GENIUS Act ) and Markets in Crypto-Assets (MiCA) regulatory standards. The announcement which was published on Saturday, reflects Paxos’ plan to accelerate stablecoin adoption within decentralized ecosystems. Paxos is perceived as the leading candidate for validator selection following its acquisition of Molecular Labs and its decade-long stablecoin expertise. Noteworthy, Molecular Labs is the infrastructure provider behind the LHYPE and WHLP tokens, which have been operational since HyperEVM’s launch. Paxos Issues Stablecoins on Stellar Network It is worth noting that Paxos has a track record of issuing stablecoins for other top companies like Binance, PayPal, Kraken, Robinhood, and OKX. In November 2024, it brought its full suite of stablecoins to the Stellar (XLM) ecosystem. Charles Casparella, CEO and co-founder of Paxos, noted that he is quite enthusiastic about the ecosystem Paxos was drawn to the Stellar network due to its proven track record in scalability and accessibility. In addition, this was a partnership that could boost financial inclusion in emerging markets by providing stable digital currencies to underserved regions. Currently, Paxos has achieved a cumulative issuance volume of $160 billion across seven tokenized assets. Fix the GENIUS Act to Favor the Banking Industry In a related stablecoin discussion, the newly launched GENIUS Act is already becoming controversial for America’s banking sector and leading crypto advocate groups. This Act, which was signed into law by President Donald Trump in July, was designed to create a legal framework for stablecoins, encourage competition, and expand financial access. However, some entities believe that there is still a lot to be fixed in the law. One of such is the contest between banks and innovators over the future of money. The concerned parties believe that the law does not fully block stablecoin issuers from offering interest-like returns. They argue that at this rate, the gap could lead exchanges and affiliates to turn stablecoins into investment products. This may eventually create risks normally tied to bank deposits and credit. The post Paxos Files Proposal to Issue Hyperliquid’s USDH appeared first on TheCoinrise.com .
