Why Stablecoin Issuers Are Racing to Power DeFi: Paxos Hyperliquid USDH Proposal Breakdown

In this Stabledash live recap, we explore Paxos Labs' USDH proposal for Hyperliquid with Ronak and Bhau, discussing how enterprise stablecoin issuers are approaching DeFi ecosystems and what it takes to scale a native stablecoin from zero to billions.

Key Topics Covered:
- The evolution from TradFi infrastructure to on-chain: How Paxos built $160B in stablecoin issuance
- Acquiring vs. building native expertise: Why Paxos acquired Molecular Labs
- Community feedback loops: What changed between V1 and V2 proposals in 48 hours
- Enterprise distribution networks: PayPal's proposed $20M investment and HYPE listing
- Regulatory infrastructure for global stablecoins: State charters, EU approvals, and compliance
- The economics of stablecoin issuance: Revenue models and ecosystem incentives
- Building credible neutrality as an infrastructure provider

About the Guests:
Ronak leads operations at Paxos, overseeing blockchain infrastructure that enables stablecoin issuance for PayPal (PYUSD), Mastercard, and other enterprises managing over $160B in assets.

Bhau heads Paxos Labs, the DeFi-focused division that acquired Molecular Labs - builders of Hyperliquid infrastructure with $60M TVL including L-HYPE and WHLP.



This conversation provides insights into how established financial infrastructure providers are competing to power the next generation of on-chain stablecoins, with implications far beyond a single ecosystem.

Track all Hyperliquid stablecoin proposals: https://stabledash.com/news/everything-you-need-to-know-about-hyperliquid-s-usdh

#cryptocurrency #crypto #defi #hyperliquid #usdh #stablecoins #blockchain