Hyperliquid exceeds NASDAQ, according to ICE CEO Jeffrey Sprecher

Sprecher commended the team at Hyperliquid, indicating a growing connection between established Wall Street entities and crypto-oriented platforms.

Key Points:

• Jeffrey Sprecher, the CEO of Intercontinental Exchange (ICE), stated during a Bernstein conference that the decentralized crypto derivatives platform Hyperliquid is «larger than Nasdaq» in terms of trading volume, praising its compact team as «very, very intelligent individuals.»
• Despite Hyperliquid’s HYPE token having a market valuation significantly lower than Nasdaq’s, it commands over 70% of the decentralized perpetual futures market and has drawn in non-crypto traders by providing 24/7 oil derivatives trading, even during weekends when ICE’s markets are not operational.
• Sprecher pointed out that Hyperliquid’s unregulated offshore nature exposes a gap in regulations under U.S. and European derivatives laws, and he anticipates that policymakers will soon need to decide between establishing a new category for perpetual futures or integrating such platforms under existing Dodd-Frank and EMIR frameworks.

Jeffrey Sprecher, the founder and CEO of Intercontinental Exchange (ICE), referred to the decentralized perpetual futures platform Hyperliquid as «larger than NASDAQ» at a Bernstein conference earlier this week, revealing that his team has met with its founders on several occasions, indicating that U.S. exchange incumbents are no longer viewing crypto-native trading platforms as marginal.

«The Hyperliquid we’re discussing, if you haven’t heard of it, is larger than NASDAQ, alright? It’s just 11 people. You look at it and think, wow, that’s impressive,» Sprecher remarked during a May 27 conversation with Bernstein analyst Chinedu Bolu, referring to the team as «very, very intelligent individuals.»

As of Thursday, Hyperliquid’s HYPE token has a market cap of approximately $15.1 billion compared to Nasdaq Inc.’s $50 billion, so the comparison does not hold when it comes to company valuation.

However, in terms of daily perpetual futures volume, Hyperliquid processes billions of dollars in notional turnover and commands over 70% of the decentralized perp-DEX market, according to industry statistics.

The «11 people» refers to Hyperliquid Labs, the core development team, while the larger project relies on contributions from open-source developers and a validator set managing the foundational Layer-1 blockchain.

Sprecher noted that ICE began paying attention partly because Hyperliquid has been executing oil derivatives trades during weekends when ICE’s conventional energy markets are closed, an activity that saw a spike during the recent Middle East tensions.

JPMorgan analysts have observed the same trend, noting that non-crypto traders are utilizing Hyperliquid’s 24/7 markets for off-hours oil exposure. «A lot of activities occur, many decisions are made over the weekend. So it has garnered significant interest,» Sprecher stated.

Under U.S. law, the perpetual futures offered by Hyperliquid are classified as swaps, which are governed by Title VII of the Dodd-Frank Act, the legislation enacted post-2008 that mandates reporting, margining, and dealer registration. ICE operates within these regulations, while Hyperliquid, being an unregulated foreign-incorporated venue, does not.

«Why are we being restricted from doing this when it’s already taking place? Can’t we establish a level playing field? Furthermore, this is a global issue,» Sprecher questioned.

He expressed his expectation that the upcoming months would yield clearer outcomes, with the decision being either to create a new category of regulated perpetual futures or to integrate offshore venues into Dodd-Frank and the EU’s EMIR regulations.