Who Profits When Hyperliquid Hits the US?

Introduction

Intercontinental Exchange (ICE), the operator of the NYSE, has agreed to launch a regulated U.S. market for perpetual futures built on the crypto‑derivatives platform Hyperliquid. The move promises greater liquidity and mainstream exposure for Hyperliquid’s native token, HYPE, but it also raises a crucial question for investors: who actually profits when U.S. traders start using this market? The answer hinges on how trading fees are split between Hyperliquid, its partner firms, and the token‑buyback mechanism that underpins HYPE’s price.

How the HYPE Buyback Works

Hyperliquid funds its buyback by converting a portion of every trading fee into HYPE at a fixed system address. The acquired tokens are then burned, permanently reducing supply and, in theory, supporting the token’s price. Recent on‑chain data shows the buyback fund purchased roughly 437,000 HYPE for $35.5 million over a three‑week period in October. However, the size of the buyback is directly tied to the share of fees that actually reaches the buyback address.

Outside Firms and Fee Splits

Since the HIP‑3 upgrade, external firms can list their own perpetual markets on Hyperliquid. Trade[XYZ] was the first to do so, offering perps on stocks, indexes, and commodities. These firms charge an additional fee on top of Hyperliquid’s base rate. In Trade[XYZ]’s model, the firm doubles the standard fee, keeping 50 % for itself and passing the other 50 % back to Hyperliquid. Crucially, Hyperliquid allows “growth mode,” which reduces its protocol fee by 90 % for listed markets—except for crypto and gold contracts. This discount dramatically lowers the portion of fees that flow into the HYPE buyback, especially for the high‑volume stock‑related perps that dominate Trade[XYZ]’s offering.

What This Means for HYPE Holders

• Current contribution: Trade[XYZ] accounts for about 30 % of Hyperliquid’s overall trading volume but contributes only 5‑7 % of the buyback funding. The bulk of the buyback still comes from Hyperliquid‑direct trades where the full fee is retained.
• Potential U.S. market impact: If the ICE‑run U.S. market attracts significant volume, the fee structure could shift. Should the U.S. market rely heavily on partner‑listed perps with growth‑mode discounts, a larger slice of fees may be diverted away from the buyback, dampening HYPE’s price‑support mechanism.
• Crypto contracts exception: Crypto‑based perps and gold contracts are excluded from the 90 % discount, meaning they will continue to funnel a higher proportion of fees to the buyback. This creates a relative advantage for those markets within the broader ecosystem.

Bottom Line

The profitability of Hyperliquid’s U.S. launch is not a simple win‑or‑lose for HYPE token holders. While increased trading activity can boost overall fee revenue, the distribution of those fees—especially the extent to which partner firms like Trade[XYZ] capture them—will determine how much actually fuels the token’s buyback. Investors should monitor the fee‑share agreements of any listed markets and watch for shifts in the proportion of crypto‑versus stock‑based perps, as these dynamics will directly affect HYPE’s supply‑side support.

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