Today, on September 10, 2025, aย Paxos USDH Proposal V2ย is released. It is aย detailed plan aimed at scaling Hyperliquid on a global scale while also maintaining regulatory compliance.ย The proposal brings PayPal and Venmo integrations. This move makes USDH a potential gateway stablecoin for global DeFi.
Paxos USDH Proposal V2 Released Today
On September 10, 2025,ย ย one of the world's most trusted and regulated stablecoin issuers announcedย Proposalย V2 after three days of intense community consultations. This proposal is a refined version of its previous proposal, answering issues that have been raised by the Hyperliquid community.
At its root, V2 adds three important upgrades:
The integration of HYPE with PayPal and VenmoThe introduction of free USDH on/off-rampsA $20 million incentive fund to help speed the growth of ecosystems.
Beyond incentives, the proposal harnesses the special legal authorization toย issue stablecoins anywhere in the world, particularly in Europe, where no other issuer could benefit from the same compliance advantage.
Source:ย Official website
Hyperliquid, PayPal, and Venmo's Relation with the Paxosย USDH Proposal V2
Hyperliquid (HYPE Token)ย is the native ecosystem in which USDH will operate. The releaseย turns Hyperliquid into a Global liquidity infrastructure. Hyperliquid becomes one of those trading centers for building a global financial infrastructure asย its base currency.
PayPal, with over 400 million users and $1 trillion+ annual payment volume, will be integrating Hyperliquids' planned stablecoinย into its ecosystem, including Checkout, Braintree, Hyperwallet, and Xoom. PayPal has also committed $20 million in incentives to the HYPE ecosystem and will sponsor free USDH on/off-ramps, making transactions in stablecoins seamless for global users.
Venmo, PayPal's social payment app that has a strong adoption in the U.S., will include HYPE and support its basedย transactions. This means millions of Venmo users can buy, hold, and use USDHย directlyย for peer-to-peer payments and transactions with merchants.
Global Integrating Payments
Under the new proposal, there areย multiple real-world use cases:
Checkout with Crypto: Customers pay for purchases, and merchants receive fiat.P2P transfers on Venmo.Remittances through Xoom in 100+ countries.Mass payouts to freelancers and contractors using Hyperwallet.
Paxos Revenue and Reward Structure
One of the big improvements on V2 is the changed revenue and reward model:
Paxos earns zero revenue until USDHโs TVL (total value locked) exceeds $1B.After $1B, Paxosโ share rises gradually, capped at 5% once TVL surpasses $5B.All fees are collected in HYPE tokens, ensuring alignment with community interests.Rewards to the AF (Asset Fund) increase from 20% at launch to 70% once TVL grows beyond $5B.
This structure ensures that the stablecoin issuerย only makes money when Hyperliquid is really growing well.
Paxos Growth Plan
Paxos hopes to extend Hyperliquid beyond trading to a full-scale global liquidity and DeFi infrastructure.Through HIP-3, Paxos will also provide asset issuers with the incentive to list perpetual markets on HYPE, which will increase the demand to trade.Stablecoin issuerย is planning to launch DeFi products, collateralized loans, and structured financial offerings, which will be accessible to a global audience through its regulated network.Importantly, this stablecoin issuerย will incentivize ecosystem builders, liquidity providers, and enterprises to adopt a dollar-backed token, ensuring long-term adoption.
Source:ย Official ย X
Paxosย Hyperliquid Session is going to happenย tomorrow for the questions and doubts arising from the community.ย
Conclusion
Paxos Cryptoย says its success is linked to the performance of HYPE. With no revenue before hitting $1B TVL, all early value flows to the community. This ensures that the token, its builders, and users benefit first before Paxos starts to make money.
This stepย is a turning point for stablecoins and decentralized finance. If carried out, this mayย go a long wayย as a foundation of on-chain finance around the world.
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