HYPE token approaches record peak as Intercontinental Exchange pursues Hyperliquid perpetuals in America
With backing from iconic Wall Street titan Stanley Druckenmiller, Trade[XYZ] has partnered with ICE to deliver Hyperliquid-based perpetual futures contracts to American retail investors.
The native token of Hyperliquid, HYPE, experienced a surge of approximately 20% on Thursday following Intercontinental Exchange (ICE), the company that owns the New York Stock Exchange, revealing its intentions to launch US perpetual futures in collaboration with Trade[XYZ], a platform counting billionaire Wall Street legend Stanley Druckenmiller among its backers.
At the moment of publication, HYPE was changing hands above $96, reflecting an increase of roughly 20% over the preceding 24-hour period, data from CoinGecko indicates, approaching the all-time peak of $97.96 established in September.
Traders utilize perpetual futures to establish positions on the prices of assets without facing an expiration date. According to information from DefiLlama, Hyperliquid ranks as the world's largest decentralized trading platform for these types of financial instruments.
In their Thursday announcement, the companies indicated they would pursue regulatory authorization for markets encompassing digital currencies, equities, indices, commodities and foreign exchange. Retail traders would be the focus of the planned marketplace. According to ICE, operations would occur independently from its institutional futures operations, featuring a dedicated clearing infrastructure.
According to ICE, over 99% of market participation involves institutional players, with the separate clearing infrastructure designed to protect current customers from counterparty risks associated with retail trading.
The initiative would provide American retail investors with a regulated pathway to access Hyperliquid-based perpetual futures contracts, while simultaneously offering ICE an entry point into the retail trading sector. On Aug. 19, President Donald Trump stated that Commodity Futures Trading Commission (CFTC) Chair Michael Selig was engaged in efforts to introduce Hyperliquid to the nation in a "fully compliant and legal fashion."
Druckenmiller investment draws Musk reaction
"I am excited to be an investor in trade(xyz)," Druckenmiller wrote on X, adding that he looked forward to using its products.
The agreement also caught the attention of Elon Musk, who shared Druckenmiller's post accompanied by the single-word commentary "Interesting."
While ICE is acquiring a minority ownership position in Trade[XYZ], the company has not revealed either the size of the investment or when the platform will go live. Cointelegraph contacted both ICE and Trade[XYZ] seeking additional information but had not received a response by publication.
Users would be required to complete identity verification and Anti-Money-Laundering checks and would execute trades via participating futures brokerage firms.
Distribution channels are anticipated to include ICE's joint venture partnership with OKX, subject to obtaining separate regulatory approvals. In March, ICE made an investment in OKX based on a $25 billion valuation.
OKX venture faces issuer objections
In related developments, ICE's distinct tokenized stock initiative with OKX has now received objections from 38 corporations, an increase from the 26 that Cointelegraph reported on Oct. 27.
The Oct. 28 filing now includes objections from Walmart, Eli Lilly, Carnival, Arcos Dorados and Cigna. It's important to note, however, that these objections relate to tokenized equity shares, whereas the Trade[XYZ] initiative involves perpetual futures contracts and remains under separate regulatory review processes.
The path to regulatory approval remains uncertain and conditional. While the CFTC granted approval to Kalshi's Bitcoin perpetual contract during May, the commission indicated that perpetual contracts tied to additional asset categories would require individual case-by-case evaluation.