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ICE, Nasdaq Shares Fall on Report of Hyperliquid's U.S. Market Entry Talks
Shares of major exchange operators Intercontinental Exchange (ICE) and Nasdaq (NDAQ) fell on Monday following a Bloomberg report that decentralized cryptocurrency platform Hyperliquid is in advanced discussions to enter the U.S. market. The potential new competition in the derivatives space weighed on investor sentiment for the incumbent exchanges.
Market Impact
Investors reacted to the news by selling off shares of the established financial exchanges, signaling concerns over a potential disruption from a major decentralized finance (DeFi) player. The market moves on Monday included:
- Intercontinental Exchange (ICE) shares dropping by 1.5%.
- Nasdaq (NDAQ) shares declining by 1.4%.
The Proposed U.S. Entry
According to the report, Singapore-based Hyperliquid Labs is in late-stage talks with Payward, the parent company of the Kraken crypto exchange. The deal would aim to bring Hyperliquid's popular perpetual futures products, which are currently unavailable to U.S. customers, into the regulated American market.
AdThe proposed structure would involve using Payward's subsidiary, Bitnomial, a U.S.-regulated digital asset exchange and clearinghouse. This would allow registered U.S. traders to access a selection of crypto-linked futures built on Hyperliquid's technology, addressing the regulatory hurdles that have so far kept the platform out of the country.
Regulatory and Business Context
Hyperliquid operates a decentralized platform that handles over $4 billion in daily trading volume without a central operator, a model that poses challenges for U.S. regulators. The reported partnership with the regulated entity Bitnomial is seen as a potential solution to this issue.
Payward has reportedly presented a proposal outlining the deal's structure to the Commodity Futures Trading Commission (CFTC). The report also noted that the move comes weeks after the Trump administration stated it was working to bring the platform to the U.S. The monetary terms of the potential deal have not been disclosed.
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