Hyperliquid CEO Defines Protocol as Infrastructure, Not an Exchange

Jake Chervinsky, CEO of the Hyperliquid Policy Center, clarified that Hyperliquid is not an exchange but rather a neutral public infrastructure designed for building trading products. Speaking at TOKEN2049 in Singapore on October 7, Chervinsky emphasized that Hyperliquid operates beneath customer-facing platforms like Coinbase and Kraken, positioning itself as a foundational layer rather than a competitor to these established exchanges.

Chervinsky explained that regulated entities, including traditional exchanges, can utilize Hyperliquid's technology to create their own products while managing customer interactions and compliance. He compared Hyperliquid's infrastructure to Bitcoin and Ethereum, arguing that it does not require registration as an exchange, which could simplify regulatory compliance for businesses that build on its framework.

The Hyperliquid Policy Center, launched in February 2026 as a nonprofit, focuses on advocacy and research related to onchain markets and perpetual derivatives. Chervinsky predicts that within a decade, significant exchanges will need to adopt public blockchain infrastructure to remain competitive, citing advantages such as transparency, resilience, and cost-effectiveness. This framework allows firms like Payward, the parent company of Kraken, to offer permissioned perpetual futures on Hyperliquid while managing compliance requirements separately.

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Source: KLEA News