GRVT Secures $19 Million to Compete with Hyperliquid in Private On-Chain Trading

Privacy-oriented exchange GRVT has successfully secured $19 million in a Series A funding round to compete against Hyperliquid, the leading platform in decentralized perpetual futures.

Key Takeaways:

• GRVT has raised $19 million to take on Hyperliquid with a privacy-centric strategy supported by ZKsync.
• The platform employs zero-knowledge technology to conceal trade information and safeguard substantial positions from market manipulation.
• In addition to privacy, GRVT aims for yield-driven growth to appeal to both active traders and passive investors.

The funding round was spearheaded by ZKsync, which contributed $14 million, supporting GRVT’s initiative to introduce institutional-level privacy to on-chain trading, as reported by Forbes.

While Hyperliquid commands a 70% market share and monthly trading volumes approaching $400 billion, its model of full transparency—where all positions, liquidation levels, and order information are accessible—has proven to be a double-edged sword.

For Large Traders, On-Chain Transparency Has Its Drawbacks

For significant traders dealing with tens of millions, this visibility poses risks.

“We’ve observed instances where they become targets,” stated GRVT co-founder and CEO Hong Yea, explaining how large positions can attract manipulation.

GRVT’s approach utilizes zero-knowledge (ZK) cryptography, enabling traders to function without revealing sensitive information.

The platform’s emphasis on privacy is already appealing to large traders. “We’ve had numerous whale traders reaching out to us due to these privacy features,” Yea noted.

GRVT also provides incentives such as negative maker fees and future token airdrops, aligning with liquidity providers.

However, GRVT is not solely focused on privacy; it is also promoting a yield-first strategy. The platform offers products like fixed-yield instruments, tokenized vaults managed by institutional partners such as Ampersan, and tokenized versions of yield-generating assets that can also serve as trading collateral.

AI Alpha Strategy by @Bcubeai standing at:
– 87%+ APR
– 2.37 Sharpe ratio
They’re literally carrying my portfolio
Link below to check them out pic.twitter.com/hyAQbDw8D6

— Grvt (@grvt_io) September 17, 2025

This model is crafted to attract both active traders and passive investors, a dual-target strategy that is uncommon in decentralized exchanges.

GRVT possesses regulatory licenses in Bermuda and has partnered with LTP and Coin Routes, indicating clear institutional aspirations.

It has also gained backing from Abu Dhabi-based Further Ventures, whose managing partner referred to GRVT’s application of ZK as “a foundation for institutional-scale markets.”

GRVT Confronts Challenges as Hyperliquid Strengthens Its Position

Nonetheless, GRVT is faced with significant challenges. Hyperliquid’s robust liquidity and network effects are formidable, and it is not remaining idle—it has recently introduced vault products and its own stablecoin.

Other decentralized exchanges are also starting to explore privacy layers and yield strategies, diminishing GRVT’s initial advantage.

As ZK technology becomes more affordable and widely adopted, privacy may transition from being a unique feature to a standard expectation.

Earlier this week, Native Markets obtained the USDH ticker for Hyperliquid’s native stablecoin, emerging victorious in a competitive governance vote that attracted bids from major players including Paxos and Ethena.

The decision, finalized on Sunday, followed weeks of speculation and community discussion, with Native Markets ultimately gaining an edge after validator commitments and prediction markets heavily favored the team.

Ethena, once regarded as a strong contender, withdrew from the competition on Thursday, citing community concerns regarding its non-native infrastructure.

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