The Hyperliquid US market could become a major growth opportunity for the blockchain-based derivatives platform if a proposal from Payward, the parent company of Kraken, receives regulatory approval.

Grayscale believes the proposed Hyperliquid US market could attract additional U.S. derivatives traders, increase trading activity and potentially generate more protocol fees for Hyperliquid. Payward announced its proposal on September 16, while Grayscale Head of Research Zach Pandl discussed its potential impact in an analysis published on September 21.

What Is the Hyperliquid US Market Proposal?

The proposed Hyperliquid US market would allow eligible U.S. customers to access perpetual futures markets using Hyperliquid’s public blockchain infrastructure.

The plan would initially focus on HIP-3 markets, a Hyperliquid framework that allows builders to create permissioned perpetual markets. These markets are currently being tested on Hyperliquid’s testnet.

Perpetual futures are derivatives that allow traders to speculate on an asset’s price without having a traditional expiration date. They have become an important part of the cryptocurrency derivatives industry.

If approved, the Hyperliquid US market could give U.S. traders access to an onchain derivatives venue while regulated entities handle the required exchange, clearing and customer-account functions.

How Would the Hyperliquid US Market Work?

Under Payward’s proposal, trading would take place on Hyperliquid’s public blockchain using its onchain order book.

The regulated components of the proposed Hyperliquid US market would be handled by Payward’s subsidiaries.

Its Bitnomial exchange, which is regulated by the U.S. Commodity Futures Trading Commission (CFTC), would create and administer the proposed markets.

Bitnomial’s clearinghouse would handle clearing and settlement, while NinjaTrader Clearing would carry customer accounts.

Access to the Hyperliquid US market would be limited to eligible customers who complete the required onboarding process and meet the applicable allowlist requirements.

This structure would allow Payward to use Hyperliquid’s blockchain infrastructure while keeping regulated market functions within its U.S. entities.

However, the proposed Hyperliquid US market still requires regulatory approval before it can become available to U.S. customers.

Why the Hyperliquid US Market Matters

The potential expansion of the Hyperliquid US market is important because the United States represents a large market for financial derivatives.

According to Grayscale, a regulated U.S. venue operating on Hyperliquid infrastructure could bring additional traders and trading volume to the ecosystem.

Higher trading activity could potentially generate additional protocol fees. However, this depends on the final structure of the markets and whether the proposed Hyperliquid US market sends fees to the Hyperliquid protocol.

Grayscale’s assessment therefore represents a potential scenario rather than a confirmed outcome.

Hyperliquid US Market and HYPE Token

The potential effect on HYPE, Hyperliquid’s native token, is another major part of the discussion surrounding the Hyperliquid US market.

Hyperliquid uses most of its trading-fee revenue to purchase HYPE tokens. As a result, increased trading activity could potentially increase the amount of revenue flowing into this mechanism.

If the Hyperliquid US market attracts significant U.S. trading volume and generates fees for the protocol, it could increase activity associated with HYPE purchases.

However, several factors remain uncertain, including regulatory approval, customer adoption, trading volume and the final fee arrangement.

Therefore, the potential impact of the Hyperliquid US market on HYPE should not be viewed as a guaranteed outcome.

Hyperliquid’s Growing Derivatives Activity

Hyperliquid has already built a significant derivatives ecosystem.

Grayscale reported that Hyperliquid averaged approximately $9 billion in open interest during the second quarter, representing a 54% increase from the previous year.

The platform also supports markets connected to equities and commodities in addition to cryptocurrency assets.

The development of the Hyperliquid US market could further expand the types of traders and institutions interacting with Hyperliquid’s infrastructure.

Other exchanges have also integrated Hyperliquid technology. For example, VALR has used Hyperliquid infrastructure for more than 200 perpetual markets.

The proposed Hyperliquid US market, however, would have additional regulatory and access requirements because it is specifically designed for the U.S. market.

Payward’s Role in the Hyperliquid US Market

Payward is the parent company of cryptocurrency exchange Kraken and has been expanding its presence in the U.S. derivatives sector.

The company’s proposed Hyperliquid US market follows its agreement to acquire Bitnomial, announced earlier as part of its U.S. derivatives expansion.

Payward has also started offering eligible U.S. customers perpetual futures through Bitnomial.

The proposed Hyperliquid arrangement could therefore represent another step in Payward’s efforts to expand its derivatives infrastructure in the United States.

HYPE Price and Hyperliquid Market Activity

HYPE has recently attracted significant attention from cryptocurrency traders.

The token reached an all-time high of nearly $98 before pulling back as the broader crypto market weakened.

The development of the Hyperliquid US market could become another important factor for investors and traders watching the Hyperliquid ecosystem.

However, the proposed market has not yet been fully launched, and its eventual impact will depend on regulatory approval, market participation and the amount of trading activity it generates.

What Happens Next for the Hyperliquid US Market?

The next major step for the Hyperliquid US market is regulatory approval.

If approved, Payward would be able to move forward with its proposed structure involving Hyperliquid’s blockchain, Bitnomial’s regulated exchange infrastructure and NinjaTrader Clearing’s customer-account services.

The success of the Hyperliquid US market would ultimately depend on how many traders use the platform, the amount of trading volume generated and the fees returned to the Hyperliquid protocol.

For now, the proposal represents a potential expansion of Hyperliquid into the U.S. derivatives market rather than a completed launch.

Key Points About the Hyperliquid US Market

• The Hyperliquid US market is part of a proposal from Payward, Kraken’s parent company.
• The plan would use Hyperliquid’s blockchain infrastructure for perpetual futures trading.
• HIP-3 markets would initially be used for the proposed structure.
• Bitnomial would handle regulated exchange functions.
• NinjaTrader Clearing would manage customer accounts.
• The Hyperliquid US market requires regulatory approval.
• Grayscale sees potential for increased trading activity and protocol fees.
• Additional fees could potentially contribute to Hyperliquid’s HYPE token purchase mechanism.
• The final impact of the Hyperliquid US market will depend on regulatory approval and actual trader adoption.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile. Always conduct your own research before making investment decisions.