Hyperliquid Strategies Seeks CFTC Registration to Bring Perpetual Futures to US Traders

Nasdaq-listed HYPE treasury firm Hyperliquid Strategies said in its quarterly results on Thursday that a subsidiary has applied to become a futures commission merchant regulated by the CFTC.

The National Futures Association register names the applicant as HypeStrat Markets LLC. Its registration as a futures commission merchant and its membership of the association have both been pending since 14 September. 

The register lists Gregory Lee as its chief executive and Brett Beldner, the parent’s finance chief, as chief financial officer.

Read more: XRP Ledger Set to Fix Token Creation Loophole After Two-Week Delay

Onshore Route for Hyperliquid Markets

If approved, the subsidiary would carry US client accounts for permissioned markets deployed on Hyperliquid, the company said. It described the step as a way to bring perpetual futures to US customers within a regulated framework.

Those markets would run under a permissioned version of HIP-3, Hyperliquid’s standard for third-party markets. A deployer holding CFTC licences as both an exchange and a clearing house would create and administer each market, according to the company’s earnings slides. The version is still on testnet and its specifications are preliminary.

Two other routes for Hyperliquid markets into the US also await regulators. ICE agreed on 29 October to run regulated US markets built on Hyperliquid for the trade[XYZ] platform.

Hyperliquid said on 26 October that Kraken parent Payward, which held talks with Hyperliquid on US perpetuals in September, intends to be the first CFTC-regulated deployer on the permissioned standard.

Net income for the quarter to 30 September reached US$620.6 million (AU$887.5 million). The company attributed it mainly to US$803 million (AU$1.15 billion) in net unrealised gains on HYPE. A US$172.3 million (AU$246.4 million) income tax provision and a US$15.3 million (AU$21.9 million) charge tied to its equity facility weighed on the result.

Staking revenue and validator commissions brought in US$12.3 million (AU$17.6 million). Interest income added US$1 million (AU$1.43 million).

Its treasury grew from 29.3 million HYPE at the end of June to 38.5 million by the end of the quarter. Those tokens were valued at US$3.51 billion (AU$5.02 billion). Cash stood at US$254.6 million (AU$364.1 million), with no debt. Holdings reached 38.9 million HYPE by 28 October.

Read also: Strategy and Strive Load Up on Bitcoin as Treasury Rankings Race Heats Up