Hyperliquid’s governance token HYPE has seen a significant surge in value, climbing above $50 during Asian trading hours. This increase in price can be attributed to the growing interest in managing the decentralized exchange’s proposed stablecoin, USDH.
According to data from CryptoSlate, HYPE has experienced a more than 7% increase in value over the last 24 hours, reaching $50.08. This upward momentum reflects a strong belief in Hyperliquid’s stablecoin strategy, which has captured the attention of established issuers in the cryptocurrency space.
One such bidder for managing USDH is Paxos, a well-known stablecoin operator. Paxos has put forward a proposal through its new division, Paxos Labs, which aims to ensure that USDH complies with stablecoin regulatory frameworks in Europe and the US. The proposal also outlines plans to deploy the stablecoin on Hyperliquid’s two chains, HyperEVM and HyperCore, while holding high-quality reserves in T-Bills, Repos, and USDG.
In addition to regulatory compliance and reserve quality, Paxos has offered an aggressive revenue-sharing model. The proposal states that 95% of the interest generated from USDH reserves will be used to buy back HYPE tokens. This redistribution of funds will benefit ecosystem partners and users, creating a sustainable and profitable system for all involved.
Furthermore, Paxos has committed to listing HYPE across its brokerage infrastructure, which powers trading on platforms like PayPal, Venmo, and Interactive Brokers. This move will increase the visibility and accessibility of HYPE tokens, further boosting their value in the market.
Agora, a stablecoin developer known for issuing the VanEck-backed AUSD, has also submitted a bid to manage USDH. Their proposal includes a coalition of partners, such as Rain, LayerZero, and Moonpay, to ensure comprehensive coverage and accessibility for USDH users. Agora has pledged to reinvest all net revenue from USDH operations back into Hyperliquid, either through its Assistance Fund or by purchasing HYPE tokens on the open market.
Overall, the competition to manage USDH highlights the growing interest and confidence in Hyperliquid’s stablecoin strategy. With established players like Paxos and Agora vying for the opportunity to manage USDH, the future looks promising for Hyperliquid and its governance token, HYPE.