HYPE surges 15% after NYSE owner announces partnership with Hyperliquid

The cryptocurrency HYPE, native to Hyperliquid, surged around 15% on Thursday (29) after Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), announced a deal to bring the decentralised platform's technology to the US financial market. The initiative envisages creating a regulated environment for trading perpetual futures contracts on cryptocurrencies, stocks, commodities and traditional currencies.

The agreement was signed with TradeXYZ, a company that builds derivatives markets using Hyperliquid's infrastructure. Under the partnership, ICE will be responsible for operating the new market and for the clearing and settlement systems, while TradeXYZ will develop the financial products.

The NYSE's parent company will also make a strategic investment in TradeXYZ, though the amount has not been disclosed.

The news boosted HYPE, which traded close to US$91.21 at one point. The cryptocurrency had reached an all-time high of US$97.96 in September and moved back toward that level with Thursday's gain.

The announcement marks a rapprochement between one of the largest infrastructure companies in traditional finance and the decentralised finance (DeFi) sector, which allows assets to be traded through blockchain-based applications.

However, the new products are not yet available in the United States. The initiative depends on regulatory approvals, including those required for trading leveraged derivatives.

In a statement, Jeffrey Sprecher, chairman and CEO of ICE, said the growing participation of individual investors in financial markets motivated the partnership.

"We've seen a clear increase in retail investor participation in the markets, and that participation is becoming increasingly global," the executive said.

According to Sprecher, the goal is to serve investors who want to trade assets around the clock, through platforms they already use.

How will the ICE-Hyperliquid partnership work?

The initiative aims to bring to the American market a type of trading that has gained popularity on cryptocurrency exchanges: perpetual futures contracts.

Unlike traditional futures contracts, which have an expiry date, perpetuals allow investors to hold long or short positions with no fixed closing date, provided they meet margin and funding requirements.

In practice, these instruments allow investors to bet on both the rise and the fall of an asset, generally using leverage, a mechanism that increases financial exposure and the risk of losses.

Hyperliquid has become one of the leading platforms in this market by allowing users to trade contracts through its own blockchain.

More recently, the network expanded its activities into traditional assets, such as stocks, stock indices, commodities and currencies, using infrastructure called HIP-3.

This system allows independent developers to create derivatives markets on Hyperliquid. TradeXYZ is one of the companies using the technology to offer these products.

With the partnership announced on Thursday, ICE intends to use this infrastructure to create a US market overseen by financial authorities.

The company will be the exclusive operator of the regulated markets developed jointly with TradeXYZ.

The project will have its own clearing and settlement structure, separate from ICE's traditional institutional business. The aim is to prevent risks taken on by retail investors from spilling over into participants in its conventional markets.

Customer identification requirements and anti-money-laundering mechanisms are also planned, in line with US rules.

The products could be distributed through brokers and partner platforms, including a joint venture between ICE and OKX, which also depends on regulatory authorisation.

According to the statement, the initiative will not replace ICE's traditional futures markets but will operate as a new business line aimed mainly at individual investors.

The partnership also underscores Hyperliquid's growth as infrastructure for trading traditional assets using blockchain.

According to data reported by CoinDesk, the markets operated by TradeXYZ on Hyperliquid have handled more than US$650 billion in just over a year. These markets will continue operating alongside the new venture planned for the United States.

The project does not yet have an announced launch date, and ICE has not said how much it will invest in TradeXYZ. Despite HYPE's rally following the announcement, the cryptocurrency remains subject to market swings, and the partnership is no guarantee of future gains.

The deal also does not mean that ICE has bought Hyperliquid or taken control of its blockchain. The company will use the network's technology through its partnership with TradeXYZ, should it obtain the necessary approvals.

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