Paxos Unveils USDH Proposal V2 to Enhance Hyperliquid Ecosystem
Paxos has proposed significant upgrades to the Hyperliquid ecosystem through its USDH proposal V2. Key points include:
- The introduction of USDH, a stablecoin compliant with the GENIUS Act and MiCA standards.
- A partnership with PayPal and Venmo, aiming to list HYPE on these platforms. PayPal processes approximately $1 trillion annually with over 400 million users.
- Free on/off-ramps for USDH and a $20 million ecosystem incentive to enhance global payment integrations.
- An incentive structure for rewards capped at 5%, where Paxos earns based on Total Value Locked (TVL) milestones.
- Paxos' reputation as a regulated entity ensures compliance, allowing USDH to scale globally.
Despite its advancements, Paxos faced regulatory challenges, settling with the New York State Department of Financial Services for $48.5 million due to anti-money laundering deficiencies linked to its partnership with Binance. The firm plans to improve its compliance program in response to these issues.