Yesterday we just discussed: @ xStocksFi officially only sent one "Hyperliquid", could it be the last signal before the stock spot goes online? In less than a day, the answer really came Is Hyperliquid really going to become an on chain broker? XStocks has officially announced that the first batch of 5 tokenized stocks and ETFs have landed on the HyperCore spot market NVDAX | Nvidia SPYX | S&P 500 ETF QQX | NASDAQ 100 ETF SKHYX | SK Hynix MUX | Micron Technology This time, we did not only register for Ticker, nor did we stay in the testing stage. We have re read the on chain order book, and bilateral quotes and tradable prices have appeared in all 5 markets As of press time, the cumulative transaction volume in 5 markets is approximately 121000 US dollars, including approximately 109000 US dollars for MUX and 12000 US dollars for SKHYX The transaction scale is currently small, but at least it indicates one thing: the stock spot on Hyperliquid has really started trading The term 'stock spot' here needs to be explained: xStocks is issued by Backed, which packages the economic value of real stocks or ETFs into tokens that can be held and transferred on the chain. According to the product structure of xStocks, each xStock is supported by corresponding underlying securities in a 1:1 ratio The underlying securities are held by regulated custodian institutions, with assets of different products stored in segregated accounts and reduced issuer risk through independent security agents and public reserve proofs But this does not mean that holding xStocks is equivalent to becoming a registered shareholder of the corresponding listed company XStocks is essentially an on chain credential that tracks the economic value of underlying securities. Holders can gain economic exposure to price changes, but typically do not have complete shareholder rights such as stock voting rights. Company dividends, stock splits, and reverse stock splits are reflected in the token balance through the Rebase mechanism For example, after the underlying company pays dividends, the dividends will deduct relevant taxes and continue to purchase more underlying stocks, and the number of xStocks held by the holders will increase accordingly. When the stocks are split, the balance of tokens on the chain will also change proportionally So it is essentially not the same product as the HIP-3 stock perpetual deployed by TradeXYZ TradeXYZ allows users to trade stock prices. Users can buy up, short, and use leverage, but they hold perpetual contracts and cannot transfer a perpetual contract as a stock asset to other on chain applications XStocks brings tokenized spot trading, where users hold on chain tokens supported by underlying securities, which can be transferred and withdrawn to self managed wallets, and may be used by other DeFi protocols for lending, collateralization, or structured products Out of the 10 xStocks Tickers registered earlier, 9 can be found on TradeXYZ with corresponding or highly relevant perpetual markets, with QQX being the main exception TradeXYZ currently offers its own XYZ100 index, not the identical Nasdaq 100 ETF contract But overall, the first batch of assets selected by xStocks were not randomly determined The official specifically mentioned that these targets include stocks and ETFs with leading open interest contracts in the HIP-3 perpetual market. That is to say, xStocks prioritizes assets that have already been proven to have trading demand on TradeXYZ Firstly, HIP-3 verifies which stocks are being traded, and then supplements the spot market for these assets This path is more likely to generate liquidity than launching dozens of stocks without real demand at once There is another crucial market structure here: xStocks is actually divided into primary and secondary markets The primary market is responsible for the issuance and redemption of tokens. To directly mint or redeem xStocks from the issuer, KYC, anti money laundering review, and wallet whitelist verification need to be completed The operating time of the primary market mainly follows the underlying securities market, which is 24 × 5. Although individual users can directly redeem under certain conditions, they need to complete identity verification, and the minimum redemption size is $5000 The secondary market is completely different. After the token is issued, it can be freely transferred between supported platforms and wallets, and traded 24 × 7 according to the rules of the trading venue The spot order book on Hyperliquid belongs to the secondary market So Hyperliquid allows xStocks to trade 24/7, but the underlying stock, issuance, and redemption channels will not become open 24/7 as a result This means that whether the xStocks price can stay close to the underlying stocks in the long term depends not only on whether there are any pending orders in the order book. More importantly, are there professional market makers with primary market qualifications who are willing to continue providing quotes on Hyperliquid? Assuming the NVIDIA spot market has closed over the weekend, but NVDAX has risen 5% on Hyperliquid due to a certain message If the primary market cannot immediately mint new NVDAX at this time, ordinary traders cannot immediately buy real stocks, mint tokens, and sell premiums. Price deviation may continue until traditional markets and primary issuance channels reopen So, Tickers can be bought and order books can be quickly established, but what truly maintains spot price anchoring is whether there are market makers who can simultaneously connect traditional securities markets, xStocks primary issuance channels, and Hyperliquid secondary order books Having bilateral quotes does not necessarily mean that the order book is deep enough. For large funds, the true slippage, market stability, and liquidity under extreme market conditions still need time to verify Especially during traditional market closures, once the order book becomes thinner, xStocks may also experience significant insertion or price deviation This launch also validates the product roadmap that Hyperliquid has always adhered to Hyperliquid does not personally issue stocks or manage underlying securities. It provides accounts, order books, matchmaking, and settlement systems on HyperCore XStocks is responsible for securities custody, legal structure, and tokenized spot trading, while TradeXYZ is responsible for perpetual contracts for stocks, indices, and commodities Professional market makers are responsible for connecting traditional markets, primary issuances, and on chain order books, while Hyperliquid is responsible for building infrastructure, and other teams build products on top of it So the importance of this matter is not just that Hyperliquid has added 5 new stocks, Ticker It is more like a validation of this modular route: the protocol does not need to become a broker, custodian, asset issuer, and market maker on its own, it only needs to enable these roles to access the same market infrastructure Previously, addresses suspected to be related to Backed/xStocks had spent about 5006 HYPE coins and acquired 10 spot tickets In addition to the 5 already open, the other 5 are: SNDKX | SanDisk SPCXX｜SpaceX TSLAX | Tesla AAPLX | Apple CRCLX｜Circle These Ticker and USDC trading pairs have completed registration, but have not yet been officially opened for trading The first five markets are more like the first phase, and if trading, custody, and liquidity operate normally, the remaining assets may continue to be open This matter also has a layer of auxiliary value for HYPE: deploying new spot ticks requires the use of HYPE to participate in auctions, and more issuers entering Hyperliquid and more assets competing for ticks may bring new demand for HYPE usage But 5006 pieces of HYPE alone are not enough to drive the long-term rise of HYPE What really matters is not how much HYPE was purchased this time, but the expanding product boundaries of Hyperliquid Previously, it mainly relied on encryption to generate transaction volume and transaction fees permanently Later, HIP-3 brought the prices of stocks, indices, commodities, and foreign exchange onto the chain Now xStocks is starting to supplement spot stocks supported by real securities assets If these spot assets can become collateral on HyperEVM in the future, or be linked to HIP-3 perpetuity, lending agreements, and portfolio margin, Hyperliquid may form a more complete set of on chain brokerage accounts: Holding stock spot - hedging with stock perpetual - basis trading around spot and perpetual - transferring spot to other on chain applications - using different assets as collateral to obtain liquidity - trading encrypted assets, stocks, indices, and commodities in the same account But these are still the directions that need to be verified in the next stage At present, xStocks cannot be directly written as a universal collateral for Hyperliquid, nor can it be assumed that spot and perpetual have automatically shared the portfolio margin Whether the relevant products are open, what risk parameters are adopted, and which regions and users can participate, all need to wait for further announcement Compliance restrictions will not disappear just because assets are put on the chain. XStocks currently does not provide services to residents of the United States, United Kingdom, Canada, Australia, and sanctioned regions. Stock tokens can be freely transferred on the chain, but this does not mean that all regions can legally purchase and use them This also brings back the KYC issue we discussed a few days ago to the table The secondary market that does not require permission is responsible for free trading, while the primary market that requires KYC is responsible for issuance and redemption. The two are not black and white, but may coexist in the same product structure Hyperliquid is no longer just a place to trade stock prices It begins to carry the stock assets themselves When an account can hold stock spot, use stock perpetual hedging, and bring assets into DeFi Is Hyperliquid still a DEX or is it becoming the underlying layer of an on chain brokerage? HYPE Hyperliquid xStocks HIP3 RWA