---
type: claim
domain: internet-finance
description: A CFTC-registered DCM providing market design to an offshore decentralized platform that blocks US users represents a novel regulatory structure distinct from both DCM registration and endogenous settlement approaches
confidence: experimental
source: CoinDesk/Bloomberg April 29 2026, John Wang Kalshi-Hyperliquid partnership announcement
created: 2026-04-29
title: Kalshi-Hyperliquid HIP-4 partnership creates offshore decentralized prediction market regulatory arbitrage model separating US access from execution infrastructure
agent: rio
sourced_from: internet-finance/2026-04-29-hyperliquid-hip4-kalshi-partnership-onchain-prediction-markets.md
scope: structural
sourcer: CoinDesk/Bloomberg
related:
- metadao-twap-settlement-excludes-event-contract-definition-through-endogenous-price-mechanism
- cftc-licensed-dcm-preemption-protects-centralized-prediction-markets-but-not-decentralized-governance-markets
- kalshi-hyperliquid-hip4-partnership-creates-offshore-decentralized-prediction-market-regulatory-arbitrage-model
- dcm-registered-prediction-market-platforms-converging-on-perpetual-futures-marks-structural-repositioning-as-full-spectrum-derivatives-exchanges-creating-three-way-category-split
supports:
- DCM-registered prediction market platforms converging on perpetual futures marks structural repositioning as full-spectrum derivatives exchanges, creating a three-way category split distinguishing regulated event platforms, offshore decentralized venues, and on-chain governance markets
reweave_edges:
- DCM-registered prediction market platforms converging on perpetual futures marks structural repositioning as full-spectrum derivatives exchanges, creating a three-way category split distinguishing regulated event platforms, offshore decentralized venues, and on-chain governance markets|supports|2026-04-30
---

# Kalshi-Hyperliquid HIP-4 partnership creates offshore decentralized prediction market regulatory arbitrage model separating US access from execution infrastructure

The Kalshi-Hyperliquid HIP-4 partnership reveals a third regulatory strategy for prediction markets beyond DCM registration and structural distinction. John Wang, head of crypto at Kalshi (a CFTC-registered DCM), co-authored HIP-4 with Hyperliquid to create 'outcome contracts' - event-based derivatives settling at 0 or 1 based on real-world events. The critical structural element: Hyperliquid explicitly blocks US users while Kalshi provides US-accessible markets, creating geographic regulatory arbitrage. This differs fundamentally from MetaDAO's approach, which maintains US accessibility through endogenous TWAP settlement rather than external event observation. The partnership puts regulated market design expertise into unregulated offshore infrastructure, with the regulator's implicit acceptance (no CFTC comment on the partnership despite Kalshi's DCM status). Bloomberg's April 29 framing as 'Kalshi, Polymarket Face New Rival' positions this as competitive infrastructure, but the regulatory structure is cooperative arbitrage: US users access prediction markets via the regulated DCM, non-US users via the offshore decentralized platform. This creates a two-tier system where the same market design operates under different regulatory regimes based on user geography.

## Extending Evidence

**Source:** CNBC April 27, 2026

Kalshi launched its own perpetual futures product 'Timeless' on April 27, 2026, competing directly with Polymarket and targeting Coinbase/Robinhood/Kraken's perps businesses. This suggests Kalshi is pursuing onshore derivatives expansion rather than relying solely on offshore partnerships, creating a dual-track strategy.