What Happened?
Paxos Labs has come up with a renewed proposal for issuing Hyperliquid’s forthcoming USDH stablecoin, which includes a comprehensive plan to boost USDH adoption. Central to the strategy is a cooperation with PayPal to integrate USDH into its payment infrastructure. Paxos plans to reinvest all revenue from USDH into Hyperliquid’s growth until it hits a $1 billion total value locked (TVL) milestone.
Who Does This Affect?
This affects PayPal and Venmo users who would experience seamless payments and zero-cost on/off-ramps with the integration of USDH. This also makes an impact on the Hyperliquid ecosystem, including validators who are set to vote on the proposal on September 14. Other competitors such as Frax, Agora, LayerZero among others will have to face the intensified competition brought by this new proposal.
Why Does This Matter?
This is crucial as it could potentially position USDH as a default stablecoin for Decentralized Finance (DeFi). Pairing USDH with PayPal’s checkout and payment infrastructure could accelerate the acceptance and ubiquity of digital assets. Moreover, this development could influence the future direction of the competition among stablecoin issuers and profoundly affect the dynamics of the crypto market.