Paxos Bridges TradFi and DeFi with USDH Stablecoin AMA

Paxos Trust Company Limited, a digital asset custody and blockchain infrastructure firm, announced today that it will host an Ask Me Anything (AMA) event on its official channels tomorrow to address community inquiries about the proposed USDH stablecoin on Hyperliquid. The session is expected to provide clarity on the mechanics, governance, and potential impact of USDH within the Hyperliquid ecosystem .

The USDH stablecoin, if approved, is intended to serve as a collateral and trading asset on Hyperliquid, a decentralized exchange powered by the Ethereum Layer 2 (L2) network. According to the proposal, USDH will be pegged 1:1 to the U.S. dollar and will be backed by a diversified basket of liquid assets, including U.S. Treasury securities and cash equivalents. The AMA event aims to facilitate a transparent dialogue between Paxos and the broader DeFi community regarding the design and regulatory compliance of the asset .

Paxos has previously introduced other stablecoins, such as Binance-USD (BUSD), which is one of the most widely used U.S. dollar-pegged tokens in the DeFi space. The USDH stablecoin, however, is unique in that it is being developed in collaboration with Hyperliquid and is specifically tailored for use on the platform. The company has emphasized its commitment to maintaining regulatory compliance and ensuring the stability of USDH's peg through real-time collateral monitoring .

Hyperliquid, a relatively new but rapidly growing decentralized exchange, has been expanding its offerings to include more institutional-grade tools and collateral options. The proposed USDH stablecoin is part of this broader strategy to attract both retail and institutional traders. During the AMA, Paxos representatives will likely address concerns around market volatility, redemption mechanisms, and how USDH compares to existing stablecoins in terms of risk and liquidity .

The timing of the AMA event is significant, as it follows recent discussions within the DeFi community about the need for more stable and regulated assets to support the growth of decentralized trading platforms. While USDH is still in the proposal phase, the event provides an opportunity for stakeholders to voice their opinions and for Paxos to gather feedback before finalizing the product. The outcome of this event could influence the broader perception of USDH and its adoption on Hyperliquid .

As DeFi platforms continue to seek alternatives to traditional stablecoins, USDH could serve as a model for future collaboration between regulated financial entities and blockchain-native platforms. The AMA will not only clarify technical details but also reinforce Paxos’s role as a bridge between traditional finance and the DeFi ecosystem .