If there's enough space, you can set him up with a shoe box in the incubator. A small smooth hide of some sort and a shallow dish of water. But still keep the paper towel moist until the yolk detaches or absorbs more.
If the yolk detaches and he has a pink nub, still keep him on moist paper towel until it heals over or looks more like an outie belly button than a nub. You can also try a very shallow bath to rinse it clean if it looks a bit dirty.
I wouldn't try to move him out to a rack or tank until the belly is looking good.
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