Hyperliquid founder: Hopes to enter Wall Street, but regulation should constrain financial institutions rather than the blockchain itself.

BlockBeats news, October 16: Hyperliquid Labs co-founder Jeff Yan said on Bloomberg's "Odd Lots" podcast that Hyperliquid is currently not open to U.S. customers, and that Hyperliquid would rather become the underlying trading technology used by traditional financial institutions than replace existing financial market participants, positioning it by analogy with Amazon Web Services (AWS) providing computing infrastructure for enterprises. He also said: "We are not trying to replace anything. In fact, I think this technology can benefit institutions that currently operate markets in a more traditional way."

Jeff Yan believes that regulatory obligations should fall on financial institutions operating markets based on the Hyperliquid blockchain, rather than on the blockchain network itself. This regulatory arrangement can enable Hyperliquid to further expand to Wall Street while avoiding bearing the full compliance burden of a traditional exchange. The blockchain is better suited as underlying infrastructure providing order books, clearing, global distribution, and liquidity aggregation. U.S. regulators are relatively cautious about new technology, but are also willing to move quickly on innovation; regarding Hyperliquid becoming the "home for all financial assets" in the future, his team is "very serious."