Hyperliquid Strategies unit applies for US futures broker status to bring perps onshore
In brief
- Hyperliquid Strategies subsidiary applied to become a US futures commission merchant (FCM).
- The proposed FCM would handle US accounts for permissioned markets deployed on Hyperliquid.
- Regulatory approval is still required for both the FCM application and the proposed markets.
- Hyperliquid Strategies spent $785 million on 9.1 million HYPE and held 38.5 million HYPE at Sept. 30.
- Hyperliquid Strategies shares fell 9.6% Thursday to close at $8.76, according to Yahoo Finance.
What the FCM would actually do
The company said the subsidiary would handle US customer accounts for permissioned markets deployed on Hyperliquid. That plugs into HIP-3, Hyperliquid's framework that lets independent operators launch custom perpetual futures markets by staking 500,000 HYPE (valued at $38.8 million, per Cointelegraph). Proposed HIP-3 features would let those operators restrict participation to approved addresses.
It's a two-part plan. CEO David Schamis laid it out in the results:
“Owning HYPE is how we aim to capture economics associated with the Hyperliquid protocol; setting up an FCM is how we intend to help bring markets deployed on Hyperliquid onshore,” said Hyperliquid Strategies CEO David Schamis
Both pieces still need regulatory approval, and that covers the FCM application as well as the markets themselves.
A big quarter for the HYPE treasury
Hyperliquid Strategies raised $911 million in equity capital during the quarter, according to its results. It spent $785 million to acquire 9.1 million HYPE, plus $17 million to repurchase 2.7 million PURR shares. As of Sept. 30, the company held 38.5 million HYPE, worth $3.5 billion at the time.
Schamis also said Hyperliquid is winning the fee-generating parts of onchain finance (and that nearly all of that value flows back to HYPE holders through programmatic buybacks).
Shares of Hyperliquid Strategies fell 9.6% on Thursday, closing at $8.76, according to Yahoo Finance.
ICE is working on a separate Hyperliquid deal
The FCM filing isn't the only attempt to bring these markets to US users. In a separate announcement on Oct. 29, Intercontinental Exchange, the parent company of the New York Stock Exchange, said it had reached an agreement with Trade[XYZ] to bring Hyperliquid-based perpetual markets to the US. ICE plans to run a dedicated market and clearing structure for them.
That deal also depends on regulatory approvals. It was announced separately and isn't part of Hyperliquid Strategies' plan.
Frequently asked questions
Why does Hyperliquid Strategies want to become a futures commission merchant?
A Hyperliquid Strategies subsidiary applied to become an FCM so it can bring Hyperliquid-based perpetual futures to the US. The company said the subsidiary would handle US customer accounts for permissioned markets deployed on Hyperliquid. Both the application and the proposed markets still need regulatory approval.
What is Hyperliquid's HIP-3 framework?
HIP-3 lets independent operators launch custom perpetual futures markets on Hyperliquid by staking 500,000 HYPE tokens, which were valued at $38.8 million. Proposed HIP-3 features would let operators create permissioned markets restricted to approved addresses.
How much HYPE does Hyperliquid Strategies hold?
The company held 38.5 million HYPE as of Sept. 30, valued at $3.5 billion at the time. During the quarter it raised $911 million in equity capital and spent $785 million to acquire 9.1 million HYPE, according to its results.
