Hyperliquid plans to introduce optional permissioned-market functionality to its HIP-3 framework, enabling market deployers to restrict participation in specific markets through onchain whitelists. According to information published by Wu Blockchain, the feature—known as HIP-3*—is currently available on Hyperliquid's testnet and is expected to be incorporated through a future network upgrade.

Under the proposed system, market deployers and their sub-deployers will be able to manage onchain whitelists that determine which participants can access individual markets. Hyperliquid said the functionality is intended to help deployers operate markets in accordance with applicable regulatory and other requirements.

Hyperliquid Expands HIP-3 Market Controls

HIP-3 is designed to allow third-party deployers to create and operate perpetual markets on Hyperliquid, a layer-1 blockchain whose flagship application is a fully onchain perpetuals DEX. The framework has expanded the range of markets that can be offered through the network while giving individual deployers greater control over market parameters and operations.

HIP-3* adds another layer of flexibility without changing the existing structure for cryptocurrency markets that do not require restricted access. Hyperliquid said the permissioned functionality will be optional and will not affect existing HIP-3 markets.

That distinction could matter for the broader ecosystem. Rather than imposing participation restrictions across HIP-3 as a whole, the proposed model would let individual market operators decide whether controlled access is necessary for a particular market. It also reflects a wider design trend among onchain trading venues, which have generally favored open, permissionless participation but increasingly face questions when listing instruments tied to regulated assets or jurisdictions.

Onchain Whitelists and Regulatory Requirements

Permissioned access has become increasingly relevant as crypto platforms expand into markets involving financial instruments and other assets that may be subject to jurisdiction-specific requirements, such as restrictions on who may trade tokenized equities, forex, or commodity-linked products. An onchain whitelist can provide a transparent mechanism for enforcing predetermined eligibility rules at the market level, with access decisions recorded and enforced by the network rather than by an offchain operator alone.

For Hyperliquid, the feature could give deployers additional infrastructure for operating markets where unrestricted participation may not be appropriate. However, the availability of the technical mechanism does not by itself establish compliance with any particular regulatory regime; individual deployers would remain responsible for meeting the requirements applicable to their markets.

The initial version of HIP-3* is already live on testnet. The next significant step will be the network upgrade that makes the functionality available on the main network, after which market deployers will determine whether and where to activate permissioned access. Watchpoints include which deployers adopt whitelists, which asset classes they apply them to, and how regulators respond to onchain eligibility controls.

Reported by Victoria Hale for Hokanews.