DoubleZero brings exclusive fiber optic market data to Hyperliquid traders

Decentralized trading infrastructure company DoubleZero has launched a dedicated marketplace data channel for Hyperliquid, allowing professional traders to no longer rely on public APIs but instead access the complete order book data of this decentralized exchange through proprietary fiber optics. This is another step closer to traditional exchanges in terms of chain-linked trading infrastructures and means that there are structural changes taking place in how markets are acquired by market makers and quantitative teams.

What markets are covered by data services

This data channel covers Hyperliquid's native perpetual contracts, as well as the markets operated by trade[XYZ]. Trade[X Y Z] is based on Hyperli liquid infrastructure and offers perpetuals tied to assets such as oil, gold or silver.

The service was developed by verification node operators and ecosystem partners, including Hyperion DeFi, MAVAN and Kinetiq. DoubleZero said the service provides a continuous stream of transactional data to market makers, quantitative trading firms and proprietary trading companies that meet their needs for faster and more stable order book updates.

Why bypass the public API

Previously, organizations wishing to have full control of the Hyperliquid order book could only compile data from public API responses themselves or operate their own hyperliquid nodes. DoubleZero notes that tweaks to the HyperLiquid Public API have reduced the frequency and depth of updates available through this channel, which is a practical barrier for professional organizations relying on high-frequency updates.

DoubleZero itself operates a global fiber-optic network dedicated to the rapid transfer of data between participants in blockchain networks and other distributed systems. With this launch, Hyperliquid becomes the third exchange supported by its Edge situational data service, preceded by Solana and Kalshi Prediction Market respectively.

On-chain markets are borrowing from traditional exchange architectures

In an interview with Cointelegraph, Hyunsu Jung, CEO of Hyperion DeFi, said that as professional exchanges migrate to the chain, Hyperliquid's trading infrastructure is becoming similar to traditional electronic exchanges. Major exchanges such as CME and Nasdaq have traditionally distributed data through a dedicated network to professional institutions, allowing automated trading companies to obtain continuous and orderly flows at high speeds.

The data from Zheng Hyperliquid can now be consumed using the same basic model: once published, synchronously distributed via dedicated fiber optics.

Traditional exchanges allow trading firms to deploy systems near the merged infrastructure, whereas Hyperliquid's transactions are executed on-chain; DoubleZero's service is only responsible for distributing distribution data and does not order or execute trades on behalf of institutions.

So this convergence isn't Hyperliquid becoming a CME, Jung says. Instead the on-chain marketplace is adopting an infrastructure that professional trading firms are already using.

He also points out that the differences in physical delays have not been eliminated: companies from Tokyo will still have a physical advantage over those from New York.

What does this mean?

For professional institutions that rely on order book speed and stability, dedicated edge channels lower the threshold for building their own data pipelines as well as mitigate uncertainty brought about by declining quality of public API data. And in a broader chain-linked marketplace, the emergence of crypto exchanges based on distributed ledger models shows that more traditional quantitative and marketable funds are being attracted to trading on chains. Subsequent concerns include whether Edge services will continue to expand to more online venues and how the latency gap between on-chain mergers and downstream deployments will affect institutional participation patterns.

(Risk note: This article is for general information only and does not constitute any investment advice.