Hyperliquid (HYPE) is making waves. This crypto-friendly business bank is all about decentralized finance (DeFi) and it’s focusing on a high-speed Layer-1 trading infrastructure. It’s not just another blockchain project trying to ride the coattails of Bitcoin, Solana, or Sui. No, HYPE is carving its own path with leveraged trading in perpetual futures, and it’s already snagged a massive 73% market share in decentralized exchanges (DEX) as of Q3 2025.
But here's the kicker: Lion Group, an institutional player, just announced it's pivoting its treasury from Solana and Sui to Hyperliquid. That's a bold move, right? But let’s pause for a moment and think about what this really means.
The Risks of HYPE Compared to the Giants
Investors should proceed with caution. HYPE's model allows for some serious leverage, with some positions reaching 40x. Just think about that for a second. In August 2025, 85% of the top positions were sitting in unrealized losses. That’s enough to give any risk-averse investor second thoughts, especially when the global macroeconomic situation is shaky.
And then there's the issue of trust. Users have reported withdrawal problems, and some wallets have been flagged by blockchain analytics as high risk. This raises serious questions about the platform's reliability, something that’s crucial when you're dealing with money.
The regulatory landscape is another minefield. As the decentralized derivatives market heats up, HYPE will need to navigate both technical and regulatory challenges. This is something Solana and Sui have been doing for a while, and they’ve got the market caps to show for it.
The Institutional Influence
Lion Group's move is not just about HYPE; it's part of a larger trend in institutional adoption of DeFi. They're not the only ones. Other players are starting to look beyond Bitcoin and towards decentralized protocols.
Lion Group's decision also highlights a more strategic approach. By gradually accumulating HYPE, they aim to optimize costs while managing market volatility. That’s something we might see more of in the future, especially as regulated custody solutions become more accessible.
The integration of DeFi with traditional finance is becoming more apparent. Lion Group’s CEO has made it clear this is a natural extension of their derivatives business. If it can lower transaction costs and open up new markets, it might just be what traditional financial institutions are looking for.
What SMEs Can Learn from Lion Group
For crypto-friendly SMEs in Europe, Lion Group offers some lessons. They reallocated their crypto holdings to tokens with strong infrastructure and institutional backing. This can enhance portfolio efficiency.
They also adopted a phased accumulation strategy. This is a classic move in traditional asset management, and it might just work for crypto too.
And let’s not forget institutional-grade custody solutions. They help navigate the regulatory maze and provide enhanced security, which is something all SMEs need when managing crypto assets.
In the end, Lion Group's pivot to Hyperliquid highlights not only the changing landscape of decentralized finance but also the critical role of custody solutions in treasury management. As the crypto world matures, both institutional investors and crypto-friendly SMEs will need to tread carefully, weighing risks against opportunities.
