HyroTrader has announced the launch of Hyro Protocol, an on-chain proprietary trading protocol built on Solana and settled in USDC.

The Prague-based firm first announced the project on July 8, saying it was intended to address what it describes as the funded trading industry’s central credibility problem.

Historically, traders and capital providers have had no way to independently verify what a prop firm’s dashboard shows them. Hyro Protocol is designed to eliminate that uncertainty, and the company says every key protocol event is verifiable on-chain, a structure it says is meant to make the trading records and capital flows visible rather than left to private dashboards.

HyroTrader CEO Samuel Drnda said, “Most prop firms still run on closed systems where rules can change mid-evaluation and payouts happen behind closed doors.”

What Hyro Protocol is building

Hyro Protocol uses what it calls a vault model divided into two parts: Challenge Vaults and Direct Vaults. The system relies on capital pools governed by smart contract rules. Traders looking to build a track record can prove themselves through Challenge Vaults, while traders with an established history can apply to manage liquidity provider capital directly through Direct Vaults.

The protocol says this follows the same hybrid logic HyroTrader has used since 2023, when it became the first crypto prop firm to route funded traders directly to their own Bybit accounts via API rather than pricing trades internally. According to the protocol, “Funded traders access more than 700 USDT perpetual pairs on live order books.”

The trust problem in prop trading

An estimated 80 to 100 proprietary trading firms shut down between 2024 and 2025, equal to roughly 13% to 14% of the global market. The period has been described as the industry’s worst collapse. Most of those firms operated on a model in which new challenge fees funded payouts to earlier traders, a structure that breaks down when growth slows.

Hyro Protocol is aiming to position on-chain prop trading as an alternative by emphasizing transparency, which matters in an industry where participants have often had to rely on the firm’s own reporting rather than independently check the underlying activity.

Its main distinction, the company says, is the scope of what it places on-chain. Instead of recording only payouts, Hyro Protocol puts the entire vault and accounting layer on-chain. That approach differs from a payout-tracking service that monitors on-chain payout data from 43 prop firms using an Arbitrum blockchain integration.

HyroTrader’s broader business

HyroTrader says it has funded more than 1,700 traders and paid out more than $5 million since introducing exchange-connected accounts in 2023. The company says funded capital has scaled to $1 million, with profit splits reaching as high as 90%.

Drnda founded an earlier version of the business, HyroTrade, in 2020 before relaunching it as HyroTrader by 2024. By then, the platform had grown to more than 30,000 registered traders and was reporting 30% month-over-month growth.

Drnda also said, “Hyro Protocol replaces trust with verification. Traders own their track records, LPs can check every number on a block explorer, and capital scales with performance instead of one company’s balance sheet.”

The firm was also named Best Prop Trading Firm at the CoinGape Web3 Innovation Awards 2026 this month. The award was decided by an independent judging panel that included representatives from Polygon Labs, Visa, Beldex, Sharplink and Liminal Custody.