ICE to bring Hyperliquid perpetual futures to the US in retail-focused deal
ICE and Trade[XYZ] agree to bring Hyperliquid markets onshore
On Oct. 29, Intercontinental Exchange (ICE) and Trade[XYZ] agreed to bring Trade[XYZ]'s Hyperliquid markets onshore in the United States. Hyperliquid is a large decentralized exchange, a trading platform that runs on a blockchain rather than through a single company.
ICE will be the exclusive operator of Trade[XYZ]'s regulated markets and will take a strategic stake in Trade[XYZ]. The stake amount was not disclosed in the summary reported in the source.
The deal is described in the source as aimed at retail traders. ICE's press release said the move was aimed at retail, according to the newsletter.
Key points
- Trade[XYZ] is described as a leading deployer of real-world-asset perpetual futures on Hyperliquid.
- Perpetual futures, or perps, are trades with no set end date. A trader puts up collateral and can close for a profit, or be liquidated if the market moves far enough the wrong way.
- Trade[XYZ] focuses on equities, commodities and currencies.
- ICE and Trade[XYZ] plan a dedicated exchange and clearing setup, reported as ICE[XYZ], for round-the-clock perpetuals on equities, indices, commodities, currencies and crypto.
- More regulatory work still lies ahead for the ICE and Trade[XYZ] combination.
Why retail traders are the focus
Andy Baehr of GSR argues that retail traders increasingly want trades that resolve fast. He points to prediction markets and same-day options as examples.
Kalshi, a prediction market platform, posted about $98 billion in contract volume in October, described as its biggest month on record. Cash-settled S&P 500 options on Cboe accounted for two-thirds of volume in July from same-day expiring options, known as 0DTE. Cboe estimates half of that 0DTE volume is retail.
Baehr argues perps fit the same pattern because outcomes can come quickly through profit or liquidation. He notes that liquidation usually carries no further penalty beyond the position, with insurance funds and other backstops absorbing most shortfalls, and the exchange invites the customer to trade again.
This retail focus is Baehr's analysis. The confirmed facts are the Oct. 29 agreement, ICE's role as exclusive operator, and its strategic stake.
What happens next on regulation
On Nov. 3, CFTC Chairman Michael Selig announced that perpetual futures on individual stocks can trade for the first time on CFTC-registered exchanges that are also notice-registered with the SEC for security futures.
ICE Futures U.S. filed for that registration on Sept. 30, according to the source. The source says more regulatory work lies ahead for the ICE and Trade[XYZ] combination.
How the US plan is structured
The source says ICE enters with a joint venture with OKX aimed at retail distribution, a plan for tokenized equities, and access to NYSE and its brand. Tokenized stocks are digital versions of stocks recorded on a blockchain.
The planned combination includes futures commission merchants at the front end, Hyperliquid infrastructure underneath, and a new ICE-run clearing structure separated from its institutional clearinghouses. Baehr suggests this may allow existing US Hyperliquid users to move into a regulated environment, and that the separate clearing structure may imply liquidations there will be routine rather than exceptional. Those are opinions in the source, not confirmed outcomes.
Stan Druckenmiller said on X that he was excited to be an investor in Trade[XYZ], in what the source describes as his first-ever post on X. Hyperliquid's HYPE token rose about 20% that day, according to the source.
What is still unclear
Other perp venues, including Kalshi and Coinbase, are already live and growing, according to the source. Whether ICE, one of the big two US futures exchanges with a traditional institutional focus, will be able to keep pace is presented as an open question.
Baehr also argues the US perp market does not need a crypto asset to work, because the audience for equity and commodity trading with a perp experience may be larger. That is analysis, not a confirmed plan.
Source for this report
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.