Jake Chervinsky says Hyperliquid is infrastructure, not an exchange

Overview

Jake Chervinsky, CEO of the Hyperliquid Policy Center, has clarified the protocol's role as public infrastructure, not an exchange. This distinction is crucial in crypto regulation, as it determines who needs a license and who doesn't.

Neutral Public Infrastructure

Chervinsky described Hyperliquid as a neutral public infrastructure that anyone can build trading products on top of. This framing allows regulated entities to build their own products on Hyperliquid's technology, handling customer-facing tasks, while the infrastructure handles plumbing.

Comparison to Bitcoin and Ethereum

Chervinsky likened Hyperliquid's infrastructure to Bitcoin and Ethereum, arguing that, like those networks, it does not need to register as an exchange. He emphasized that the network operates beneath customer-facing platforms that traders actually use.

Regulatory Strategy

The Hyperliquid Policy Center launched in February 2026 as a nonprofit, focusing on advocacy and research on onchain markets and perpetual derivatives. Perpetual derivatives, or perps, are futures contracts with no expiry date, making them one of the most heavily traded products in crypto.

Kraken's Adoption of Hyperliquid

Payward, the parent company of Kraken, announced plans to offer permissioned perpetual futures on Hyperliquid to eligible US customers. This setup pairs public blockchain technology with compliance layers on top, allowing regulated firms to access an onchain order book without the protocol itself becoming a regulated firm.

Predictions for the Industry

Chervinsky predicted that significant exchanges will need to adopt public blockchain infrastructure within a decade to stay competitive. He cited advantages of transparency, resilience, and cost-effectiveness, arguing that these benefits will drive industry-wide adoption.