Quick Take
- NYSE owner ICE and Trade[XYZ] plan a US market for Hyperliquid-based perpetual futures, subject to regulatory approval.
- Trade[XYZ] says its existing Hyperliquid markets have handled more than $650 billion in cumulative volume in just over a year.
- ICE is investing in Trade[XYZ]. The companies have not disclosed how the proposed US market would share fees with Hyperliquid.
Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, is planning a US perpetual-futures market built on Hyperliquid.
On Oct. 29, ICE and Trade[XYZ], a crypto startup building products on Hyperliquid, announced plans to establish a dedicated US market for round-the-clock perpetual futures covering crypto, equities, commodities, and currencies, subject to regulatory approval.
Billionaire investor Stanley Druckenmiller said he had invested in Trade[XYZ] and expected to use its products in his investment process.
ICE's Hyperliquid plan targets a new retail market
In May, CryptoSlate reported on Bloomberg’s account that ICE and CME Group had raised concerns with US regulators about oil-linked trading on Hyperliquid, including possible market manipulation and sanctions evasion.
Those concerns emerged as traders increasingly used Hyperliquid's perpetual contracts to speculate on oil prices outside conventional exchange hours, particularly during periods of geopolitical uncertainty.
The new agreement provides ICE with a potential route into that business, opening a customer segment largely absent from its existing operations.
ICE says more than 99% of participation in its current markets comes from institutional customers, leaving retail derivatives trading as a major expansion opportunity.
Trade[XYZ] says its markets have handled more than $650 billion in cumulative trading volume on Hyperliquid in just over a year.
Its markets offer continuous exposure to equities, stock indices, and commodities through perpetual contracts that do not expire like traditional futures.
These instruments let traders maintain leveraged positions and respond to developments outside conventional trading hours, attracting customers whose trading patterns differ from ICE's institutional hedgers.
ICE intends to operate the new US venue and clearing infrastructure, while Trade[XYZ] designs the products and Hyperliquid supplies the underlying technology.
ICE says the retail business will operate separately from its institutional futures franchise, with existing institutional customers bearing no exposure to the new platform’s trading or counterparty risks.
Distribution could extend through ICE's joint venture with crypto exchange OKX, although the venture's US regulatory approvals remain pending.
How the deal could affect HYPE
The deal also has implications for Hyperliquid’s HYPE token, because some existing trading fees fund token purchases.
HYPE’s revenue outlook depends in part on how much trading reaches Hyperliquid and which fee arrangements apply.
ICE is acquiring a minority equity stake in Trade[XYZ], an independent market operator, rather than purchasing HYPE or investing directly in Hyperliquid. The investment size has not been disclosed.
Under Hyperliquid's existing HIP-3 framework, independent market deployers can retain a share of trading fees, while the protocol collects revenue from transactions executed on its infrastructure.
According to DefiLlama data, Trade[XYZ]'s existing markets generated approximately $25 million in trading fees during the third quarter, with about $12 million allocated to Hyperliquid.
Under Hyperliquid's current mechanism, protocol revenue supports an Assistance Fund that automatically buys HYPE on the open market and burns acquired tokens, reducing supply.
Consequently, additional trading volume from a regulated US market could increase protocol revenue and strengthen the mechanism supporting HYPE purchases.
Yet that outcome depends on whether the planned Hyperliquid-based US markets follow comparable revenue-sharing arrangements.
Neither ICE nor Trade[XYZ] has disclosed the precise fee structure for the new US venue, including how much trading revenue would accrue to Hyperliquid.
ICE and Trade[XYZ] must secure approval for their proposed exchange and clearing structure, including authorization to offer leveraged perpetual contracts to eligible US customers.
The companies have not announced a launch date, while the proposed distribution through ICE's OKX joint venture requires separate regulatory approvals.
Mentioned in this article
Editorial credits
