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HYPE Rallies 20% on Hyperliquid Prediction Markets Push

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HYPE Rallies 20% on Hyperliquid Prediction Markets Push

Hyperliquid’s HYPE token soared over 20% to lead cryptocurrency gainers, as the HyperCore team announced support for HIP-4, a proposal to introduce “outcome” trading.

This development marks a strategic move for the decentralized perpetual futures platform, aiming to capture a share in one of the fastest-growing sectors.

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Hyperliquid’s HIP-4 Proposal Sends HYPE to 2-Month High

Market data showed that HYPE surged 22.39% over the past day, outperforming the broader market’s 3.6% gain over the same period. This made it the top gainer among the 100 largest cryptocurrencies on CoinGecko.

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At press time, HYPE was trading at $37, marking its highest price since late November 2025. Its trading volume also surged by more than 36% to around $1 billion.

Hyperliquid (HYPE) Price Performance. Source: BeInCrypto Markets

The price rally comes amid the latest network developments. The HyperCore team confirmed its support for HIP-4 on February 2. HIP-4 introduces outcome trading, a new type of contract designed to be fully collateralized and to settle within fixed ranges.

This structure allows for a variety of use cases, including prediction markets and bounded options-style instruments. It’s worth noting that while outcome trading closely overlaps with prediction markets, the two are not synonymous.

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Prediction markets are a specific form of outcome trading in which participants trade contracts tied to future events, with prices reflecting the implied probability of each outcome.

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Outcome trading is a broader concept that encompasses prediction markets alongside other event-based instruments, such as bounded options or structured outcome contracts. In short, all prediction markets fall under outcome trading, but not all outcome trading constitutes prediction markets

“There has been extensive user demand in both of these areas, and builders will likely think of novel applications as well,” the team wrote.

In contrast to traditional derivatives, outcome-based contracts do not use leverage or liquidation mechanisms. Instead, they introduce non-linear payoffs and dated contracts. According to the team,

“The outcome primitive expands the expressivity of HyperCore, while composing with other primitives such as portfolio margin and the HyperEVM.”

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The HIP-4 outcome trading feature is currently live on testnet. Once technical work is finalized, the protocol plans to launch canonical markets that rely on objective settlement sources.

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Canonical markets will use USDH, Hyperliquid’s native stablecoin. The team added that, depending on user feedback, the infrastructure could later be opened to permissionless market deployment.

The latest move follows growing traction after the platform’s HIP-3 deployment. Activity across externally deployed markets has continued to expand, with open interest surging to an all-time high of over $1 billion on January 29. At press time, open interest stood at $929.4 million.

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Prediction Markets Achieve Record Growth

Meanwhile, prediction markets are emerging as a rapidly expanding sector, attracting major players looking to capitalize on growing momentum. Coinbase recently launched prediction markets for all US users through a partnership with CFTC-regulated Kalshi, signaling increasing mainstream adoption.

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Interest in the sector has risen alongside higher activity across these platforms. According to data from Dune, monthly trading volume reached an all-time high of $12.4 billion in January 2026, led by Kalshi, Polymarket, and Opinion.

Just three days into February, volume has already reached $1 billion, highlighting the sector’s strong growth trajectory.

Prediction Market Monthly Volume.
Prediction Market Monthly Volume. Source: Dune

Overall, Hyperliquid’s support for HIP-4 expands the protocol’s capabilities beyond traditional perpetual futures, positioning it to benefit from the growing demand for outcome-based trading products. As prediction markets gain traction as one application of this broader framework, the successful execution of HIP-4 could drive further adoption across the Hyperliquid ecosystem.

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Crypto World

Iran turns Strait of Hormuz into $1-per-barrel Bitcoin tollbooth

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Iran strikes Gulf energy network as oil surges past $110

Iran will charge tankers $1 per barrel in bitcoin to cross the Strait of Hormuz during a two‑week US ceasefire, adding a crypto tax to the world’s key oil chokepoint.

Iran will force every oil tanker transiting the Strait of Hormuz during the new two-week ceasefire with the US to pay a $1-per-barrel toll in cryptocurrency, turning the world’s most sensitive oil chokepoint into a de facto bitcoin paywall. According to the Financial Times, Tehran will demand that shipping companies settle the fee in digital assets, primarily bitcoin, as it seeks hard-to-trace revenues while sanctions bite. Hamid Hosseini, spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union, said the system is designed to slow traffic on Iran’s terms and tighten control over what moves through the corridor.

Under the scheme, tankers must first email Iranian authorities with detailed cargo manifests before entering the strait. Hosseini told the Financial Times that once the email is received and Tehran completes its assessment, “vessels are given a few seconds to pay in bitcoin, ensuring they can’t be traced or confiscated due to sanctions.” He added that “everything can pass through, but the procedure will take time for each vessel, and Iran is not in a rush,” underscoring that the stated aim is to prevent weapons shipments during the pause in fighting. With typical crude cargoes ranging from 500,000 to 2 million barrels, a single transit could mean crypto payments of $500,000 to $2,000,000 per voyage.

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Ceasefire, crypto and a global oil lifeline

The toll comes as Washington and Tehran test a fragile truce that hinges on a partial reopening of the Strait of Hormuz, which before the war carried roughly a fifth of the world’s seaborne oil. A senior Iranian official told Reuters that Iran could reopen the strait “limited, under Iran’s control” as early as Thursday or Friday, ahead of talks with US officials in Pakistan. Oil markets have already reacted: Brent futures slid about 13% to roughly $94.76 per barrel and US benchmark WTI dropped more than 15% to around $95.79 after President Donald Trump agreed to the two-week ceasefire, conditional on the “immediate and safe” reopening of the strait.

In Washington, Trump has floated turning the tolls themselves into a joint business model. “We’re thinking of doing it as a joint venture,” he told ABC News’s Jonathan Karl, calling it “a way of securing it — also securing it from lots of other people. It’s a beautiful thing.” That suggestion follows earlier musings that the US could impose its own tolling regime on ships using the strait, effectively monetizing a corridor where even a $1-per-barrel surcharge is a small fraction of crude trading in the mid-$90s but represents a new geopolitical tax on a market still reeling from weeks of war-driven price spikes.

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Standard Chartered Mulls Restructuring of Zodia Crypto Custodian: Report

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Standard Chartered Mulls Restructuring of Zodia Crypto Custodian: Report

Standard Chartered is reportedly weighing a restructuring of its majority-owned crypto custodian Zodia Custody, as large banks look to bring more digital asset infrastructure inside their core banking operations.

The United Kingdom-based lender plans to fold Zodia’s crypto custody business into a division inside its corporate and investment bank that already offers similar services, while keeping Zodia operating as a standalone Software-as-a-Service (SaaS) platform for digital asset custody, according to Bloomberg on Wednesday, citing people familiar with the matter. An announcement on the restructuring could reportedly come as soon as this month.

It is not yet clear whether Standard Chartered has opened negotiations with Zodia’s minority shareholders, which include Northern Trust, Emirates NBD, National Australia Bank and SBI Holdings.

Standard Chartered has rapidly expanded its own digital asset footprint, reportedly exploring the launch of a crypto prime brokerage platform through its venture arm, SC Ventures, and rolling out institutional crypto trading in summer 2025.

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Related: Standard Chartered says faster stablecoin turnover could curb demand

The bank was an early mover into digital assets, setting up Zodia in 2020 with Northern Trust, and the custodian has since raised external capital and grown across seven offices in Europe, Asia and the Middle East.

Zodia Custody Services. Source: Zodia Custody

Cointelegraph reached out to Standard Chartered and Zodia, but had not received a response by publication.

How other big banks are internalizing crypto custody

Standard Chartered’s reported rethink comes as other global banks take digital asset custody directly under regulated banking entities. In February, Morgan Stanley applied for a US de novo national trust bank charter, which would allow it to custody certain digital assets and execute purchases, sales, swaps, transfers and staking services for clients within a bank-regulated framework.

In October 2022, BNY Mellon launched a Digital Asset Custody platform in the US that lets selected clients hold and transfer Bitcoin (BTC) and Ether (ETH) alongside traditional assets on a single platform, positioning the bank as a core provider of both conventional and tokenized asset servicing.

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