Paxos competes for the issuance rights of HyperLiquid stablecoin, promising a HYPE buyback plan.

On September 7, news broke that stablecoin giant Paxos has released a proposal titled "Issuance of USDH Supported by Paxos," formally entering the competition as an issuer of the stablecoin USDH under HyperLiquid. I believe this move demonstrates Paxos's ambition to expand its influence in the stablecoin market, particularly in the current environment where competition in the stablecoin market is becoming increasingly fierce.

If Paxos is successfully selected as the USDH issuer, they have proposed a quite attractive revenue-sharing plan: allocating up to 95% of the interest from the USDH reserves for repurchasing HYPE and redistributing the repurchased tokens to ecosystem programs, partners, and users. This strategy is clearly aimed at attracting the support of the HyperLiquid community.

It is worth noting that just two days ago (September 5), HyperLiquid announced the release of the USDH token symbol for stablecoin issuance. The entire process will be decided through a transparent on-chain process via validator voting. Teams interested in applying for the symbol must submit proposals in the new forum and provide the user address that will be used to deploy the USDH symbol if elected.

In the current market context, this competition is particularly noteworthy. The exchange rate of the Swiss Franc to the Malaysian Ringgit is currently about 1:5.28, demonstrating the typical performance of strong currencies against weak currencies. Meanwhile, the price of Bitcoin plummeted nearly 10% after Trump threatened to impose a 100% tariff on China, reflecting the cryptocurrency market's sensitive response to international trade tensions.

I can't help but ask, in the context of increasing global economic uncertainty, will the strategic position of stablecoins become more important? Paxos's bid for the issuance of USDH at this time may be precisely because they have seized this opportunity. However, in any case, the final decision lies in the hands of HyperLiquid's validators, and their votes will determine the future direction of USDH.