Exclusive from Reuters! dYdX is entering the U.S. by the end of the year, the $1.5 trillion volume king returns.

Reuters exclusively reported that the decentralized derivatives trading exchange dYdX plans to enter the U.S. market by the end of the year. dYdX President Eddie Zhang stated that having a platform in the U.S. is crucial as it aligns with the company's broader future development roadmap. According to reports, the platform plans to offer Spot Crypto Assets trading in the U.S., but due to regulatory restrictions, dYdX is unable to provide its flagship product, perpetual futures trading.

Why dYdX Must Return to the US Market

(Source: Reuters)

Eddie Zhang, the CEO of dYdX, told Reuters that having a platform in the U.S. is crucial for the exchange, as it aligns with the company's broader future development roadmap. This statement implies profound strategic considerations. The U.S., being one of the largest Crypto Assets markets in the world, has the most mature institutional investors and the largest retail base. dYdX exited the U.S. market in 2023 due to regulatory pressure; although this decision avoided short-term regulatory risks, it also resulted in the loss of the most important market share.

In terms of market size, the number of crypto users in the United States is estimated to exceed 50 million, accounting for about 10% of the global crypto user base. However, the trading activity and average transaction amount of U.S. users are far higher than the global average. Losing the U.S. market means that dYdX has lost at least 20-30% of its potential trading volume. More importantly, the absence of the U.S. market impacts the global influence of the dYdX brand. When major competitors are competing in the U.S. market, dYdX's absence puts it at a disadvantage in the global narrative.

dYdX has chosen to return to the U.S. market by the end of 2025, making the timing selection extremely crucial. After the Trump administration took office, the regulatory environment for crypto in the U.S. underwent a fundamental change. The departure of SEC Chairman Gary Gensler and the appointment of pro-crypto Paul Atkins marked the end of the “crypto winter.” Trump publicly promised to make the U.S. the “global cryptocurrency capital” and to promote friendly legislation, creating an ideal policy window for dYdX's return.

dYdX, as a Decentralization exchange, has a deeper significance in its return to the US market. It represents a reconciliation between DeFi (Decentralization Finance) and the traditional regulatory system. For a long time, DeFi protocols have struggled to fit into existing regulatory frameworks due to their decentralization characteristics. dYdX chooses to actively embrace regulation, operating within a compliance framework, setting a precedent for other DeFi protocols. If dYdX can successfully operate in the US market, it will prove that decentralization and regulatory compliance are not irreconcilable.

Spot Trading and Perpetual Futures Strategic Segmentation

According to reports, the platform plans to offer Spot Crypto Assets trading in the United States and reduce trading fees to 50 to 65 basis points (0.5% to 0.65%). This rate is highly competitive in the U.S. market. The Spot trading fee rates of the largest compliant Crypto exchange in the U.S. typically range from 0.5% to 1.5%, while dYdX's rates are at the industry median level. However, considering the higher security and privacy protection provided by its Decentralization architecture, this pricing strategy is attractive.

However, due to the current restrictions imposed by US regulatory agencies, dYdX will be unable to offer its flagship product, perpetual futures trading, in the United States. This is a significant compromise. Since its launch in 2019, dYdX's core competitive advantage has been in decentralized perpetual contract trading. Perpetual contracts are the most popular products in the crypto derivatives market, accounting for over 70% of derivatives trading volume. Losing this core product will greatly diminish dYdX's appeal in the US market.

Mr. Zhang told Reuters that he hopes regulators will eventually provide guidance on the issuance of perpetual futures products. This expectation is not unfounded. Last month, the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission indicated that they are considering whether to allow “novel innovative” products to be listed in the U.S., including perpetual contracts. This regulatory progress is part of a broader plan by President Donald Trump to support the development and use of blockchain and encryption, making the U.S. a global leader in digital finance.

dYdX US Market Strategy Dual Track System

Short-term (by the end of 2025): Launch Spot trading with a fee rate of 0.5-0.65% to establish market presence.

Medium to Long Term (After 2026): Wait for SEC/CFTC to open perpetual contracts and resume core business.

The statements from the SEC and CFTC are a key turning point. For the first time, the two major regulatory agencies publicly discussed the compliance path for perpetual contracts, indicating a shift in regulatory attitude from “prohibition” to “how to regulate.” This change provides hope for dYdX, as even though it can only offer Spot trading in the short term, once a compliance framework and user base are established, dYdX can quickly launch and capture the market once perpetual contracts are approved.

From a business strategy perspective, it is a wise incremental strategy to first promote Spot trading. It allows dYdX to re-enter the view of American investors, building brand recognition and a user base. The regulations for Spot trading are relatively clear, and the risks are lower. Once the regulatory framework for perpetual contracts is clarified, dYdX can quickly expand its derivatives trading business based on the existing user base, rather than starting from scratch.

$1.5 trillion trading volume proves market position

At the same time, dYdX stated that since its launch in 2019, its total trading volume has exceeded $1.5 trillion. This is a shocking figure that demonstrates dYdX's dominance in the field of decentralized derivatives trading. What does $1.5 trillion mean? It is equivalent to the annual GDP of many medium-sized countries. In contrast, the largest compliant crypto exchange in the U.S. is expected to have a trading volume of about $2 trillion for the entire year of 2024, while dYdX, as a decentralized exchange, has achieved a trading volume that reaches 75% of the largest compliant crypto exchange in the U.S. without KYC and without custody, which itself is proof of the success of the decentralized model.

According to data from DefiLlama, its perpetual contract trading volume has reached 8 billion USD in the past 30 days. This figure shows that dYdX's business remains active, despite exiting the US market, as users in other regions around the world continue to support the platform's operations. A monthly trading volume of 8 billion USD translates to an annualized figure of about 96 billion USD. Although this represents a decline compared to the total of 1.5 trillion USD, it still makes it a leader among decentralized derivatives exchanges.

From a technical architecture perspective, dYdX migrated from Ethereum to its own Cosmos application chain in 2023. This migration significantly improved transaction speed and reduced costs. The dYdX Chain, built on the Cosmos SDK, can achieve sub-second transaction confirmations and almost zero gas fees. This performance advantage allows it to compete with centralized exchanges. For a return to the U.S. market, this technical foundation will provide strong support.

dYdX's business model is also continuously innovating. In 2024, dYdX launched a revenue-sharing mechanism that allocates a portion of trading fees to DYDX token stakers. This design ties platform revenue to token value, creating stronger economic incentives. For US users, if dYdX succeeds in the US market, the increase in trading volume will directly boost the earnings of all DYDX holders.

In terms of the competitive environment, dYdX will face intense competition in the U.S. market. Compared to other crypto exchanges, dYdX's advantage lies in the higher privacy protection and lower counterparty risk provided by its decentralization architecture, but whether this is enough to attract U.S. users to migrate from existing platforms still needs to be tested by the market.

The Trump administration's policies opened the door for DeFi

This regulatory progress is part of a broader plan by President Donald Trump to support the development and use of blockchain and Crypto Assets, making the United States a global leader in digital finance. After the Trump administration took office, U.S. crypto policy underwent a 180-degree shift. From the Biden era's “Operation Chokepoint 2.0” (which restricted crypto companies through the banking system) to Trump's “full support,” this policy transformation has created unprecedented development space for the entire Crypto Assets industry.

The SEC and CFTC have stated that they are considering whether to allow “novel innovative” products to be listed in the United States, including perpetual contracts. This statement itself is historic. During Gensler's tenure, the SEC's attitude towards any innovative crypto products was one of skepticism and restriction. Now, the regulators are actively discussing how to make innovative products compliant for listing, indicating a shift in regulatory philosophy from “preventing innovation” to “promoting innovation.”

For dYdX, this policy shift is a fundamental prerequisite for its return to the US market. If the regulatory environment remains as hostile as in 2023, dYdX cannot risk returning. Zhang's expectation that regulators will eventually provide guidance on perpetual contracts is based on an assessment of the current policy direction. If the Trump administration continues to push for friendly legislation, the launch of perpetual contracts by dYdX in the US may just be a matter of time, possibly even as early as 2026.

From a broader perspective, the return of dYdX is a landmark event for DeFi entering the mainstream. For a long time, DeFi protocols have been unable to enter the U.S. market due to regulatory uncertainties, operating in a gray area. dYdX chooses to actively embrace regulation and establish a compliance framework, providing a replicable template for the entire DeFi industry. If successful, top DeFi protocols like Uniswap, Aave, and Compound may follow suit, ushering in a new era of compliance for DeFi in the U.S.