- Hyperliquid co-founder Jeff Yan believes self-custody mainly drives demand for onchain finance, not 24/7 trading.
- For him, the reason all boils down to control, which people are reluctant to give up to intermediaries.
Hyperliquid (HYPE) co-founder Jeff Yan has recently set the record straight at the Korea Blockchain Week. He argued that round-the-clock trading is not the main reason investors turn to onchain finance.
Real Selling Point of Onchain Finance
Lately, too much emphasis has been placed on onchain finance making markets available 24/7. While this is certainly enticing for investors, Yan believes the sector’s real value proposition isn’t anchored solely on this factor.
The co-founder of the popular decentralized exchange (DEX) for perpetual futures and spot assets claimed that the key differentiator between onchain and traditional finance lies in their custody mechanisms. Onchain finance lets market participants retain full custody of their assets, eliminating the risks inherent in intermediaries.
Yan explained that crypto has never relied on conventional market hours because it’s inherently international. Meanwhile, he noted that many traditional exchanges have already extended their trading sessions.
For Yan, it all boils down to control. Self-custody significantly mitigates counterparty risks and other single points of failure tied to centralized entities.
“Onchain finance really, at its core, means that users have still retained control and custody of their funds,” said Yan. “I think that’s the number one thing. It does matter during critical moments when there are issues with counterparties, intermediaries, and custodians.”
Another draw of onchain finance is transparency. He highlighted that such a degree of trust and neutrality often lacks in a system controlled by a single private entity.
Despite that, Yan is not ruling out the fact that an always-on trading session matters. It’s especially needed for assets whose values stagnate when markets are closed, such as commodities and equities.
However, it’s worth noting that self-custody remains a double-edged sword. Rather than concentrating risk to another party, it shifts it entirely to asset holders, effectively moving the point of failure around them.
Hyperliquid Going to the US
Hyperliquid is currently geo-blocked in the US and is not permitted to offer its services to Americans. HYPE token, though, is available in the jurisdiction.
The chain has recently been creating massive hype after US President Donald Trump confirmed that he has instructed the Commodity Futures Trading Commission (CFTC) to explore ways to bring the perp DEX onshore. With the strong stamp of approval from none other than the White House, Payward, Kraken’s parent company, has reportedly started negotiations with Hyperliquid for its potential entry into the US.
Reports indicate that the parties are already in “advanced talks.”
