ICE and Trade.xyz Pursue U.S. Perpetual Futures Venue Using Hyperliquid Infrastructure

ICE and Trade.xyz Pursue Proposed U.S. Perps Venue Using Hyperliquid

Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, is reportedly partnering with Trade.xyz to build a U.S.-regulated perpetual-futures venue using Hyperliquid infrastructure. The proposed market is not operating, and the companies have not disclosed its regulatory path, products or launch timing.

• ICE is reportedly investing in Trade.xyz, but the terms are undisclosed.
• The proposed venue would offer round-the-clock trading through participating brokers.
• Retail access could bring significant ongoing CFTC obligations.
• Trade.xyz’s existing offshore markets are expected to operate separately.

Reports say investor Stan Druckenmiller is among a small group of outside market figures backing the effort. His role has not been specified. ICE’s investment is described as strategic, but its size and terms remain unknown. Reports also say ICE is likely to operate the proposed venue exclusively, though that arrangement has not been confirmed.

The proposed U.S. market would have separate exchange and clearing infrastructure from Trade.xyz’s existing offshore markets, according to reports. It is intended to use Hyperliquid, a blockchain-based network known for decentralized perpetual-futures trading. The companies have not explained exactly what the U.S. venue would use from Hyperliquid, such as its software, execution or settlement systems.

Users would access the venue through participating brokers and platforms, not through Trade.xyz’s offshore markets. The proposed service would operate 24 hours a day and include know-your-customer (KYC) identity checks and anti-money-laundering (AML) controls. The companies have not announced any brokers, eligibility rules, leverage limits or launch date.

How perpetual futures work, and where the risks lie

Perpetual futures, often called “perps, ” are contracts that track an asset’s price but have no expiry date. Unlike dated futures, they do not settle when a contract deadline arrives. Traders can keep positions open indefinitely, subject to the venue’s rules and the risks tied to their collateral and positions.

Perps commonly use leverage, which lets traders control a position larger than the collateral they put up. Leverage can magnify gains, but it also magnifies losses. A relatively small move in the wrong direction can trigger a forced closure. Funding payments periodically pass between traders on opposite sides of the market, helping keep a perp’s price aligned with its reference market.

Reports describe a possible product range covering equities, stock indexes, commodities, foreign exchange and cryptocurrencies. That list is not confirmed. Trade.xyz has deployed real-world-asset perpetuals on Hyperliquid, and reports have described one as an S&P 500 perpetual. The word “official” should not be mistaken for a regulatory classification or a guarantee of rights tied to the index. The contract’s legal structure matters.

U.S. regulation is an ongoing obligation, not a box to tick

The Commodity Futures Trading Commission (CFTC) says a facility offering futures to people who are not “eligible contract participants” generally must apply to become a designated contract market (DCM), unless an exemption or exclusion applies. A DCM is a CFTC-regulated futures exchange. The proposed venue’s legal structure is unknown, as is whether an exemption or exclusion could apply.

Designation is not a one-time hurdle. The CFTC’s DCM framework includes ongoing requirements covering market integrity, financial safeguards, customer protections, governance, recordkeeping and system safeguards. A U.S.-regulated venue would face operational and oversight duties that cannot be met simply by putting trading infrastructure on a blockchain.

Listing a product does not necessarily require an individual affirmative CFTC approval decision for every contract. The CFTC says a DCM may list a product by filing a certification that it complies with applicable law and rules, or by requesting CFTC approval. These are separate routes. The available information does not show which would apply to this proposal or whether a filing has been made.

The proposed mix of assets could bring further complications. Commodity, cryptocurrency, equity and index-linked contracts should not be assumed to get identical treatment. The CFTC notes that security futures have special joint CFTC, SEC requirements, while options on securities and securities indexes fall under SEC jurisdiction. A product’s label does not settle its legal status.

24/7 trading has a catch

ICE has described the potential audience as a large global retail trading population seeking short-duration, around-the-clock exposure across asset classes that existing U.S.-regulated venues may not serve well. The appeal is clear: crypto markets stay open through the weekend, and traders may want to respond to events outside traditional exchange hours.

But continuous trading does not mean the underlying stocks, indexes or commodities are always open, or equally liquid at every hour. When a reference market is closed, prices may rely on other inputs. Thinner trading can also make price moves less reliable. The proposed venue has not disclosed how it would set reference prices during those hours.

Trade.xyz says its offshore markets have become reference points for continuous price discovery when traditional venues are closed. The company also says those markets have surpassed $650 billion in volume in just over a year. That figure is the company’s measure of activity. It does not prove that every contract has deep liquidity or that prices will remain reliable in all market conditions. Reports say the offshore markets are expected to continue alongside the proposed U.S. venue.

What Hyperliquid infrastructure means remains unclear

ICE CEO Jeffrey Sprecher has previously said ICE held several discussions with Hyperliquid while evaluating on-chain perpetual markets. Payward, Kraken’s parent company, has separately outlined plans to offer regulated Hyperliquid-based perpetual futures to U.S. clients, subject to approval.

These efforts show interest in connecting crypto-native trading systems with regulated U.S. markets. They do not explain how this venue would work. The roles of ICE, Trade.xyz, brokers, any clearing entity and Hyperliquid infrastructure have not been detailed. Using blockchain infrastructure does not, by itself, determine a venue’s regulatory status or remove its operators’ obligations.

ICE says it has more than 25 years of experience in regulated markets, clearing and risk management. That experience is relevant, but key questions remain: which entity would operate the venue, how clearing would work, what contracts it would list and which regulatory route it would follow.

Key questions and answers

• Is a U.S. Hyperliquid perps market already operating?

  No. ICE and Trade.xyz are pursuing a proposal. They have announced neither a launch date nor a completed regulatory process.

• Does every contract need individual CFTC approval?

  Not necessarily. A DCM may seek CFTC approval for a product or file a certification that it complies with applicable rules. The route for this proposed venue is unknown.

• Will Trade.xyz’s offshore markets continue?

  Reports say they are expected to operate alongside the proposed U.S. venue. The two are described as having separate exchange and clearing infrastructure.

• What assets could the U.S. venue list?

  Reports describe possible contracts tied to equities, indexes, commodities, foreign exchange and crypto. No final product list has been confirmed.

• Why does the regulatory structure matter to traders?

  It can determine who may access the venue and what safeguards, dispute processes and financial protections apply. The proposed structure and protections have not been disclosed.

The proposal could bring perpetual futures into a more familiar U.S. regulatory framework while drawing on infrastructure associated with decentralized trading. But that combination is not automatic. Retail access, leverage, asset-specific rules and the division of responsibility among the parties all matter. Until the companies disclose the structure and the regulatory steps become clear, this remains a consequential plan, not an open door to U.S. perps trading.