Proposal for Gemini Acquisition
Lorenzo Valente, Director of Crypto Research at Ark Invest, has publicly urged the perpetual decentralized exchange Hyperliquid to acquire the Gemini exchange. Valente suggested that Hyperliquid capitalize on recent regulatory signals from President Donald Trump and the CFTC to expand its U.S. operations.
According to Valente, an acquisition valued at roughly $450 million would give Hyperliquid access to Gemini's complete U.S. regulatory stack, which he estimates could be worth around $200 million independently. This move would position the platform as a regulated venue for HIP-3 and HIP-4 activities in the United States.
Funding Strategy and Market Precedents
To finance the potential transaction, Valente proposed using approximately 7.9 million HYPE tokens from the community reserve, which holds 389 million HYPE. To replenish the reserve, the analyst recommended halting current token buybacks and token burns to redirect capital toward strategic expansion.
Valente pointed to similar corporate moves in the industry, such as Polymarket's acquisition of QCEX and Robinhood's deal for Bitstamp. Gemini recently obtained Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) licenses from the CFTC, enabling the Winklevoss twins-owned exchange to offer perpetual contracts and prediction markets onshore.
Regulatory Preparation and Market Position
Hyperliquid has recently taken steps regarding U.S. compliance by screening wallets linked to sanctioned entities and testing a KYC-based feature called Stars, though the platform's official pathway for U.S. market access remains unconfirmed.
Rival protocol Lighter is reportedly exploring a similar DCM route for U.S. entry. However, Hyperliquid currently maintains a 45% market share, including TradeXYZ volumes, compared to Lighter's 9% market dominance.
