Analyst Note: Introducing Unit - Bringing Spot BTC to Hyperliquid

Introduction

Until now, spot trading on Hyperliquid has been confined to a limited selection of Hyperliquid native assets. Today, Unit, a third-party team building on Hyperliquid’s native L1, has launched a mechanism that will enable direct spot BTC trading on Hyperliquid’s orderbook. This marks the first step in a broader expansion, with the underlying infrastructure designed to facilitate liquid, onchain trading for any asset in the future, including other majors, top alts, and RWAs.

Unit aims to be the asset tokenization layer for Hyperliquid, designed to facilitate seamless deposits and withdrawals of major crypto assets like BTC, ETH, and SOL. Unlike traditional BTC trading solutions that rely on custodians, Unit ensures users maintain full control over their assets while trading on Hyperliquid’s L1.

How Unit Works

At the core of Unit’s design is its Guardian Network, a distributed system of independent operators that verify transactions and enable trust-minimized cross-chain transfers. Unit’s Multi-Party Computation (MPC) Threshold Signature Scheme (TSS) ensures that assets remain self-custodied while being tradable on Hyperliquid.

The process is simple: