Paxos has put forward a proposal to issue a new stablecoin, USDH, on the decentralized derivatives exchange Hyperliquid. The proposal emphasizes regulatory compliance and a revenue-sharing model designed to benefit the Hyperliquid ecosystem.

The proposed USDH would be "GENIUS compliant," referring to a framework for globally recognized, compliant, and institutional-grade stablecoins. This aligns with a growing industry trend toward regulatory clarity for digital assets.

A key feature of the proposal is a revenue-sharing agreement. This model would distribute a portion of the yield generated from the stablecoin's reserves to HYPE token holders, protocols, and validators on the Hyperliquid network, creating a new incentive layer.

The move comes as Hyperliquid experiences significant user and volume growth. A native, compliant stablecoin like USDH is positioned to provide the platform with greater stability and scalability, reducing reliance on bridged assets and offering users a more seamless trading experience.