Hyperliquid’s tokenized stock market heats up

Less than a month after TradeXYZ deployed tokenized Nasdaq futures (XYZ100) on Hyperliquid, multiple protocols have launched TSLA, NVDA, and SPACEX perpetual trading in the past 24 hours.

TradeXYZ, the permissionless persistence arm of Unit, a Hyperliquid tokenization layer, started a gold rush yesterday with the launch of tokenized NVDA. Today, Felix Protocol and TradeXYZ follow TSLA and Ventures launches SPACEX.

While the XYZ100 still leads the HIP-3 sector by a wide margin in total volume and open interest, TradeXYZ’s NVDA and TSLA markets have expanded, generating $26 million in 24-hour volume and nearly $9 million in open interest during that time.

HIP-3 Market by Volume – Hyperliquid

A notable difference between TradeXYZ’s market and the markets operated by Felix and Ventures is that the XYZ market is denominated in USDC, Hyperliquid’s dominant stablecoin, while Felix and Ventures are settled in USDH, Native Markets’ recently launched stablecoin.

This move will be USDH’s first real source of demand, as it will funnel 50% of its reserve yield into the purchase of HYPE tokens.

All new markets are launched with low open interest limits, which are expected to increase over time as the team continues to monitor performance.

HIP-3 Market Scaling and Distribution

Felix Protocol contributor Charlie spoke to The Defiant about new developments in HIP-3, including the fragmentation of liquidity across markets representing the same tokenized stocks, and how the market can expect HIP-3 to grow beyond its crypto-native audience.

He said there is currently overlap between Unit and Felix, with both offering tokenized TSLA markets. However, this overlap is expected to diverge as Felix develops other businesses that do not rely solely on Hyperliquid’s UI as the primary TSLA/USDH distribution source.

Charlie added that there are several benefits to using USDH, including a 20% reduction in taker fees, a 50% increase in rebates, and a 20% increase in volume contributions. “This means it’s cheaper and more liquid to trade the same markets on Felix. Additionally, our fee schedule is lower as well. Therefore, the main differentiator between Felix and Unit is cost.”

Although the HIP-3 perpetual market is still in its infancy, even for crypto-native use cases, the team aims to expand the HIP-3 funnel and attract traditional financial traders as well.

“I think this (delivery to non-crypto audiences) primarily comes down to regulatory clarity and distribution, and the two interact with each other. Once one large player starts consolidating PERP, and starts consolidating equity P/E in response to customer demand, regulatory clarity will follow.”

“On the distribution side, non-crypto natives won’t want to go through the complexities of things like wallet management to trade these markets. That’s where things like Privy+ Hyperliquid builder code integrated into known interfaces like Bloomberg fill the gap,” Charlie concluded.