Validator-Based Markets Enter the Fray

Hyperliquid, the L1 best known for its perpetual futures exchange, announced on May 26 that it now supports canonical prediction markets for events that occur offchain. The new markets are published by automated newsfeed software that validators run as part of their standard node operations, meaning outcome resolution carries the same decentralized trust assumptions as the rest of the Hyperliquid network.

Traditionally, prediction market platforms rely on a separate oracle or centralized operator to determine event outcomes, but Hyperliquid’s approach embeds resolution into the validator layer itself, removing the need for a third-party data source and keeping the entire process within a single vertically integrated protocol.

The move puts Hyperliquid in more direct competition with Polymarket, the dominant prediction market platform in crypto, which has recorded record trading volumes through 2025 and 2026.

Unlike Polymarket, which relies on UMA’s optimistic oracle for dispute resolution, Hyperliquid’s validator-based model removes the oracle middleman entirely; however, whether the approach draws meaningful volume away from Polymarket’s established user base remains to be seen.

Polymarket Faces New Competition

Hyperliquid has been one of crypto’s standout performers over the past 12 months, with the HYPE token currently trading around $60.00, and the platform generating $170.29 billion in perpetual futures volume over the past 30 days. The broader ecosystem holds $5.53 billion in TVL, split between $3.99 billion on Arbitrum and $1.53 billion on Hyperliquid’s own L1. The protocol’s annualized fees run at $669.62 million, with 99% directed to an Assistance Fund for HYPE buybacks.

Moreover, as Bitcoin.com News reported yesterday, HYPE exchange-traded funds (ETFs) attracted $72.4 million in inflows during their first full week of trading, even as bitcoin ETFs shed $1.26 billion in the same period. The divergence signals capital rotating into ecosystem-specific vehicles rather than simply exiting crypto.

Lastly, today’s launch is not the only prediction market development making headlines, as earlier today, Binance Wallet integrated a third-party platform for enabling onchain trading of real-world outcomes.

With spot trading, perpetual futures, lending, RWAs, and now prediction markets all on a single L1, Hyperliquid has quickly turned itself into one of the most comprehensive onchain ecosystems in the world today.

The collaboration marks one of the first efforts to put a national currency, the Georgian Lari, onto digital asset rails governed by a purpose-built stablecoin regulatory framework, Tether said in its announcement Monday (May 25).

“Stablecoins are no longer a niche financial instrument. They are becoming part of the infrastructure layer for global finance,” said Paolo Ardoino, CEO of Tether. 

“Georgia has moved early to create serious regulatory architecture for digital assets and stablecoins, and that clarity creates the foundation for real innovation and adoption.”

According to Tether, the planned coin, known as GEL₮, will function as a digital representation of the Lari, and is designed to support cross-border commerce, digital payments, FinTech development and wider access to programmable financial infrastructure in Georgia and the broader region.

Tether, issuer of the largest stablecoin, adds that the announcement builds on years of work by Georgia’s government and central bank to promote digital assets and create regulations that will attract related businesses.

“Importantly, Georgia’s framework has been designed to achieve substantive compatibility with emerging U.S. stablecoin regulation, including the GENIUS Act,  positioning Georgia among the earliest countries seeking direct regulatory interoperability with the evolving U.S. digital asset framework,” the announcement added.

PYMNTS examined the changing regulatory landscape around digital assets last week, after the European Union said it was reexamining whether its Markets in Crypto-Assets Regulation (MiCA) policy framework is still “fit for purpose” two years after its passage.

“That wording matters,” PYMNTS wrote. “Regulators do not typically reopen flagship frameworks so quickly, unless they believe either that the market moved faster than expected, competitive dynamics have changed, geopolitical pressure is forcing adaptation, or some combination of the three.”

The PYMNTS Intelligence and Citi report “Chain Reaction: Regulatory Clarity as the Catalyst for Blockchain Adoption” argues that blockchain’s next leap will be guided by regulation. MiCA initially gave Europe a substantial first-mover edge over other major markets. 

“But fast forward to 2026, and the U.S. has been working to close that gap, aided by the about-face in digital asset policy driven by the current U.S. administration,” PYMNTS wrote.

Given recent crypto-related moves by the Securities and Exchange Commission (SEC), the White House’s Council of Economic Advisers, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), “it appears that, at least by any historical measure, crypto’s relationship with regulators in the U.S. has matured from adversarial to iterative,” the report added.

Major Institutional Transaction Executed

The Abu Dhabi-based global investment company, International Holding Company (IHC), has executed a $30 million (AED 110 million) transaction using a stablecoin backed by the United Arab Emirates (UAE) dirham, marking the first major institutional use of the stablecoin since receiving regulatory approval. The transaction was carried out using the DDSC stablecoin on ADI Chain, an institutional Layer-2 blockchain developed by the ADI Foundation.

Officials said the multimillion-dollar transaction demonstrates the digital currency ecosystem’s operational readiness and ability to handle institutional volumes. DDSC was created through a partnership among IHC, First Abu Dhabi Bank and Sirius International Holding, with technological support from the ADI Foundation.

The Central Bank of the UAE’s approval of the DDSC stablecoin earlier this year is part of a broader regulatory push that has already seen multiple dirham-backed tokens clear licensing hurdles. As per one report, the first AED stablecoin to secure central bank approval was the AE Coin, issued by Al Maryah Community Bank (Mbank). Additionally, Zand Bank recently obtained a license for AEDZ, distinguishing itself as the UAE’s first regulated, multi-chain AED-backed stablecoin designed to operate natively on public blockchains.

According to a media statement, the project aims to provide secure and regulated digital transactions for corporations and individuals while speeding up cross-border payments and trade settlements.

“This transaction demonstrates that the UAE’s digital infrastructure is live, resilient, and ready to support real institutional financial activity,” Syed Basar Shueb, chief executive officer of IHC, said in a statement. “Executing 110 million DDSC on ADI Chain is a clear signal that we are entering the next phase, where institutional-grade digital assets are not only viable, but operational at scale.”

Proponents of stablecoins argue they reduce the high costs, delays and complexities associated with traditional international banking systems, particularly in emerging markets.

Following the successful transaction, developers said they plan to expand institutional participation and establish new digital trade and payment corridors connecting the Middle East with global markets.