Hyperliquid Strategies pursues US futures registration through subsidiary

Hyperliquid Strategies aims to obtain regulatory approval for a US futures brokerage via its subsidiary, HypeStrat Markets. Meanwhile, crypto exchange Binance has resumed withdrawals for HYPE token after a long suspension. Hyperliquid disclosed that HypeStrat Markets applied for futures commission merchant registration with the National Futures Association in August, which is currently pending.

The National Futures Association oversees registration and compliance for futures intermediaries under the US Commodity Futures Trading Commission. Hyperliquid Strategies mentioned the proposed brokerage as a way to bring trading activity from the decentralized Hyperliquid ecosystem into the American regulatory framework, using HIP-3 for support.

Approval depends on regulatory authorization and market approval. However, the proposed intermediary would only allow access to specific authorized markets, subject to American regulatory requirements. Binance also restored withdrawals for HYPE and other cryptocurrencies following a security incident on October 29. Binance listed HYPE, Injective, Aptos, Plasma, NEAR, and Litecoin among the assets awaiting restoration, subject to security assessments.

The process involved reopening selected Ethereum and Solana tokens alongside other supported networks. Hyperliquid Strategies reported its HYPE treasury expanded during the quarter, increasing from 29.3 million tokens to approximately 38.5 million. The company allocated $785 million to purchase 9.1 million HYPE tokens and $17 million to repurchase 2.7 million shares.

Hyperliquid's quarterly net income was $620.6 million, driven by unrealised gains on its cryptocurrency holdings. The company's total assets stood at approximately $3.76 billion, including $3.51 billion in HYPE tokens and $254.6 million in cash.