Hyperliquid Unveils HIP-3 Permissioned Markets Feature, Enabling Institutional-Grade Compliance and Custom Market Creation

San Francisco, September 3, 2026. Hyperliquid has introduced HIP-3 (Hyperliquid Improvement Proposal 3), a permissioned markets framework enabling market creators to implement custom access controls, compliance logic, and settlement mechanisms directly on the Hyperliquid chain. The feature addresses a structural gap in decentralized derivatives infrastructure: the inability to serve regulated institutions, enterprise clients, and jurisdictions requiring granular permissioning and audit capabilities.

HIP-3 arrives as Hyperliquid processes more than $2 billion in daily perpetual futures volume and four months after the platform's May 2026 prediction markets launch, which positioned Hyperliquid as a direct competitor to Polymarket and Kalshi. The broader prediction markets sector has accumulated $8.7 billion in institutional ETF assets since CFTC regulatory approval in September 2024, with major asset managers including Grayscale, iShares, and Invesco among the largest holders. That institutional capital inflow has sharpened demand for compliance-ready blockchain market infrastructure.

Permissioning at the Protocol Level

HIP-3 enables market creators to implement KYC/AML requirements, geographic restrictions, counterparty whitelisting, and custom settlement logic within individual markets, while preserving on-chain settlement and the performance characteristics of Hyperliquid's native chain. Each permissioned market maintains a cryptographically verifiable audit trail, satisfying regulatory record-keeping requirements without routing activity through centralized custodians.

Concrete use cases include tokenized equity funds requiring accredited investor verification, enterprise prediction markets restricted to internal participants, and regulated derivatives markets with jurisdiction-specific access rules. Market creators retain full control over permissioning parameters, with smart contract enforcement replacing manual compliance gatekeeping.

Institutional Demand and Competitive Positioning

Hyperliquid's existing derivatives infrastructure, processing more than $2 billion in daily volume, provides the liquidity depth and market-making capacity required to support institutional-scale permissioned markets. The platform's daily perpetual futures volume is approximately 10.7 times the total daily volume of the prediction markets sector ($187 million).

Current institutional alternatives carry structural limitations. Polymarket, the prediction markets leader, relies on Polygon's centralized sequencer and Coinbase for regulatory compliance, without native permissioning infrastructure. Kalshi operates as a centralized platform with regulatory approval but without on-chain settlement. Centralized exchanges including Binance, Bybit, and OKX offer institutional compliance frameworks but introduce custodial counterparty risk and cannot provide true on-chain settlement.

Regulatory Alignment and Context

The feature's architecture aligns with anticipated regulatory frameworks from the CFTC and SEC, which have signaled interest in blockchain-based market infrastructure meeting existing compliance standards. Hyperliquid is engaging with regulators across multiple jurisdictions, including the EU and UK, where regulatory frameworks for blockchain-based derivatives are under active development.

Polymarket's July 2026 launch of a dedicated research institute signals the sector's maturation toward regulatory legitimacy. Samsung's concurrent rollout of stablecoin payment capabilities to 1.2 billion active Galaxy device users indicates that blockchain settlement infrastructure is reaching mainstream consumer distribution channels.

About Hyperliquid

Hyperliquid is a high-performance decentralized derivatives exchange operating on its own purpose-built blockchain. The platform processes more than $2 billion in daily perpetual futures volume and expanded into prediction markets in May 2026, competing with Polymarket and Kalshi. Hyperliquid differentiates from centralized exchanges through on-chain settlement and from other decentralized platforms through superior throughput, lower latency, and native institutional infrastructure. HIP-3 represents the platform's third major protocol upgrade, extending its infrastructure to serve regulated institutions, enterprise clients, and compliance-sensitive market creators.

Media Contact: [email protected]