Crypto Developers Expand Perpetual Futures to Traditional Assets, Bypassing Wall Street

In a bold shift reshaping financial markets, crypto developers are extending the perpetual swap (perp) model to traditional equities and indices, including the Nasdaq 100, Tesla, and Coinbase. These digital contracts, which allow traders to speculate on stock movements without owning the underlying assets, are operating 24/7 and bypassing the traditional brokerage model. The initiative is gaining traction despite regulatory and market uncertainties.

are derivatives that enable traders to take leveraged long or short positions on asset prices, with no expiration date and high leverage ratios—sometimes as high as 100:1. The model has already transformed crypto markets into a multi-trillion-dollar ecosystem. Now, developers are applying the same framework to equities, offering a decentralized alternative to Wall Street's infrastructure.

Hyperliquid, a fast-growing blockchain platform, has launched a Nasdaq 100-linked perp contract known as XYZ100, which has attracted more than $60 million in open interest. This development highlights growing demand for decentralized, high-leverage equity derivatives, even as such products remain technically unavailable to U.S. investors due to regulatory constraints.

Wall Street is not entirely out of the picture. Institutional players are taking a cautious but strategic interest in the space. Jane Street, among others, has supported Vest Labs, a firm developing a venue for global equity perp trading. , CEO of Vest Labs, emphasized the potential for 24/7 price discovery and global accessibility for investors.

The rise of equity perps reflects two broader market forces: the surge in retail speculation and the crypto industry’s push to rebuild financial infrastructure. While big institutions are exploring tokenized Treasuries and regulated digital assets, crypto-native developers are reviving the early experiments that defined the industry—perpetual swaps, prediction markets, and leveraged products. These contracts are fast-moving, lightly regulated, and designed for volatility, catering to a new generation of traders seeking greater exposure.

Traders post crypto collateral—often USDC—to open positions on assets such as the Nasdaq 100 or Tesla. They do not own the actual shares but enter smart contracts that track price movements via external data feeds. If the trade moves in their favor, they earn the difference. If it moves against them, their positions are typically auto-liquidated when margin runs out. A dynamic funding rate ensures price alignment between long and short positions, keeping the contract tethered to real-world values.

The model is supported by price oracles and market makers, which help maintain liquidity and price discovery even when traditional markets are closed. While this creates opportunities for continuous trading, it also introduces risks—particularly around weekend distortions, regulatory clarity, and the legal status of such contracts.