• A subsidiary, HypeStrat Markets, has a pending FCM application with the National Futures Association, filed in August, CoinDesk reported [1][2].
  • The FCM would carry U.S. accounts for permissioned HIP-3 markets on Hyperliquid, subject to regulatory approval [1].
  • Quarterly net income was $620.6 million, mostly unrealized HYPE gains; staking revenue and validator commissions were $12.3 million [1].

Hyperliquid Strategies, the Nasdaq-listed company that holds the HYPE token, said a subsidiary has applied to become a futures commission merchant, a broker registered with the Commodity Futures Trading Commission that can hold customer accounts for futures trading [1]. Subject to approval, the FCM would carry U.S. client accounts for permissioned markets deployed on Hyperliquid under HIP-3, a proposed set of deployer features that would let independent operators run their own markets on the chain [1].

"Setting up an FCM is how we intend to help bring markets deployed on Hyperliquid onshore," CEO David Schamis said in the Nov. 5 results release [1]. The company said there is no assurance on the timing or outcome of the application or of regulatory approval for permissioned HIP-3 markets [1]. The applicant is a subsidiary called HypeStrat Markets, and National Futures Association records show the application, filed in August, is still pending, according to CoinDesk [2]. Hyperliquid itself remains closed to U.S. users [2].

A quarter of HYPE buying

In the quarter ended Sept. 30, the company raised $911 million through its committed equity facility and spent $785 million on 9.1 million HYPE, lifting its holdings to 38.5 million tokens worth $3.51 billion at quarter-end [1]. It also spent $17 million buying back 2.7 million of its own shares [1].

Net income was $620.6 million, built mainly on $803.0 million of unrealized gains on HYPE, offset partly by a $172.3 million tax provision [1]. Revenue was $12.3 million of staking revenue and validator commissions, plus $1.0 million of interest income [1]. The company ended the quarter with $254.6 million of cash and cash-like instruments and no debt [1].

The application joins other routes to bring Hyperliquid-based perpetual futures to U.S. traders. Intercontinental Exchange has agreed to partner with trade[XYZ] on a regulated U.S. venue for such markets, also pending CFTC approval [3].

Companies mentioned

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