Felix Protocol to Bring Spot‑Equity Trading to HyperEVM via Ondo Finance Partnership
The DeFi lending and HIP‑3 provider will be the first to offer liquid, tokenised U.S. equities on Hyperliquid’s Layer‑1, with deep liquidity sourced from Ondo Global Markets.
Overview
Felix Protocol, a decentralized finance platform that supplies the Hyperliquid Improvement Proposal‑3 (HIP‑3) suite, announced a strategic collaboration with Ondo Finance to launch a suite of spot‑equity products on HyperEVM, the execution layer of Hyperliquid’s blockchain. The joint effort will make Felix the inaugural “liquid spot equity” provider on the network.
What the Launch Entails
- Initial offering: More than 100 U.S. equity tokens will be available at launch, with a roadmap that targets the inclusion of over 1,000 equities in the months ahead.
- Technical rollout: The assets will be listed first on Felix’s native trading interface on HyperEVM. A separate timeline for deployment on Hypercore, Hyperliquid’s settlement layer, has not been disclosed.
- Liquidity model: Rather than relying on automated‑market‑maker (AMM) pools, Felix will tap the order‑book depth provided by Ondo Global Markets. This approach is intended to sidestep the “boot‑strapping liquidity” challenge that has hindered on‑chain spot equity markets to date. According to Charlie, a contributor to Felix, the team deliberately avoided interaction with Hyperliquid’s spot module initially to preserve this deep‑liquidity model.
- 24/7 access: All minting and redemption actions for the tokenised stocks will be routed through Felix smart contracts, granting round‑the‑clock exposure to the underlying assets.
Ondo Finance’s Role
Ondo Global Markets, the largest issuer of tokenised stocks in DeFi, currently accounts for roughly 53 % of the sector’s market cap—about $228 million in circulating supply. Its infrastructure will supply the immediate liquidity needed for multi‑million‑dollar equity orders from day one, according to the partnership announcement.
Market Context
The tokenised equity space has been dominated by derivative products, with platforms such as Ostium and TradeXYZ recording $1.3 billion and $7 billion respectively in perpetual‑contract volume since the start of 2026. While derivative‑only offerings benefit from continuous trading, they do not provide true spot ownership, a gap Felix aims to fill.
Tokenised stock market capitalisation has been on a steady upward trajectory, surpassing $400 million in early January. Solana presently hosts the largest share of this market (≈39 %), closely followed by Ethereum (≈38 %). The introduction of deep‑liquidity spot equities on HyperEVM could diversify liquidity sources across chains and broaden the appeal of on‑chain equity ownership.
Potential Impact
- Liquidity diversification: By bypassing AMM pools and using order‑book liquidity from Ondo, Felix could set a precedent for how spot equities achieve sufficient depth without extensive market‑making incentives.
- User experience: Traders will be able to execute large equity orders instantly on a Layer‑1 blockchain, potentially reducing slippage compared with existing AMM‑based tokenised stocks.
- Competition with derivatives: A robust spot market may attract traders who prefer actual asset ownership over perpetual exposure, thereby nudging the balance between spot and derivative volume on DeFi platforms.
- Cross‑chain dynamics: Successful implementation on HyperEVM could encourage other L1 or L2 solutions to adopt similar liquidity‑first approaches, fostering a more interoperable equity tokenisation ecosystem.
Key Takeaways
- First mover advantage: Felix becomes the premiere liquid spot‑equity provider on HyperEVM, leveraging Ondo’s order‑book liquidity.
- Broad selection: The launch starts with over 100 U.S. stocks, with an ambitious pipeline to exceed 1,000 listings.
- Liquidity strategy: Avoiding AMM‑based liquidity aims to deliver “multi‑million‑dollar equity orders” from day one.
- Market significance: The partnership underscores the growing demand for true spot exposure to equities in DeFi, complementing the dominant derivative market.
- Future outlook: If the model proves scalable, it may reshape how tokenised equities are introduced on other blockchains, prompting a shift toward deeper, order‑book‑driven liquidity solutions.
Felix’s entry into the spot‑equity arena marks a notable evolution for DeFi’s equity offerings, and the industry will be watching closely to see whether its liquidity‑first approach can deliver the seamless, large‑ticket trading experience that legacy markets have traditionally provided.
Source: https://thedefiant.io/news/defi/felix-protocol-to-launch-spot-equities-on-hyperevm
