Hyperliquid Tests KYC Feature Amid US Market Push

Hyperliquid, a decentralized exchange (DEX), has reportedly been testing a Know Your Customer (KYC) feature with an allowlist. This move has sparked questions about the platform's plans and whether it is paving the way for U.S. markets. According to analyst Rajiv Patel, the platform pushed a new feature called Stars that allows deployers to make a HIP-3 commodity futures allowlist for trading. The allowlist can have up to 10K addresses; those not included can only fund their accounts but not trade.

This move has led analysts to speculate that Hyperliquid is trying to activate a front-end for U.S. users, which some have dubbed 'Hyperliquid U.S.'. Crypto investor McKenna shared a similar stance, stating that the conversation with Hyperliquid Labs, HPC and TradeXYZ with the SEC/CFTC has been productive, and that building the infrastructure to onboard into the United States is a priority.

Another analyst noted that this move may be an attempt to segment U.S. users and market makers (MMs) from the platform's massive offshore segment by creating separate orderbooks (liquidity pools).