Paxos has updated its USDH stablecoin proposal with detailed plans for integration into PayPal and Venmo, aiming for seamless on and off-ramps and direct support for peer-to-peer and merchant payments.

If executed, those integrations would make USDH broadly usable in mainstream global payments, representing a major bridge between DeFi and traditional payments.

“72 hours. Every comment read and concern addressed,” said Paxos in an X post, linking to the new version of its proposal for USDH.

The updated proposal includes $20 million in ecosystem incentives alongside a performance-based revenue model to align Paxos’ interests with Hyperliquid’s growth.

This story is an excerpt from the Unchained Daily newsletter.

Paxos said it will only receive fees once USDH crosses $1 billion in total value locked (TVL), and its share will be capped at 5% even above $5 billion TVL. Until the $1 billion TVL milestone, all revenue from USDH will be reinvested to grow the Hyperliquid ecosystem and its Assistance Fund.

Paxos is in competition with other major issuers including Agora, LayerZero, Native Markets, Ethena Labs and Sky for USDH, with a final validator decision expected after Sept. 14.