Hyperliquid Enters Prediction Markets, Challenges Kalshi, Polymarket

Hyperliquid, a decentralised finance exchange that processes roughly $6 billion in daily derivatives volume, has launched its first prediction market contracts, positioning itself against established platforms Kalshi and Polymarket, according to DL News.

The platform’s initial Bitcoin outcome market generated about three times the volume of comparable markets on Polymarket and Kalshi combined, Hyunsu Jung, chief executive of Hyperion DeFi, told DL News. Jung said the results demonstrate that a shared liquidity layer can convert users effectively, calling binary markets a natural extension of Hyperliquid’s push to build a full financial stack. Hyperion DeFi is a US publicly traded company that accumulates Hyperliquid’s HYPE token.

DL News reported that the launch, known as HIP-4, coincides with growing institutional interest in prediction markets. Bernstein analysts Gautam Chhugani and colleagues have added prediction markets to their digital assets research coverage alongside tokenisation and stablecoins. The analysts noted that binary contracts can offer macro funds cleaner event-risk hedges than traditional instruments, since payoffs and maximum losses are fixed in advance rather than subject to the basis risk found in options or commodity exposures.

Kalshi has also drawn institutional participation, executing a bespoke block trade brokered by Greenlight Commodities between a hedge fund and Jump Trading Group tied to a California carbon allowance auction, DL News reported. Clear Street has separately partnered with Kalshi to provide regulated clearing access for hedge funds.

Hyperliquid’s product benefits from existing institutional infrastructure, including prime brokerage margin financing from FalconX, integration with Ripple Prime, and custody and staking support from Anchorage Digital. Jung said future volume, open interest, and additional market types will indicate the product’s trajectory.

Based on reporting by www.dlnews.com.