Silhouette has launched request-for-quote (RFQ) trading for its xStocks product on Hyperliquid, a move that lets market makers compete for tokenized equity trades settled onchain. The new system replaces the usual continuous order book with a quote-driven process, where buyers ask for prices and market makers respond with their best offers.
A quote-driven model for tokenized equities
In an RFQ setup, a trader sends out a request for a specific quantity of an asset. Market makers then submit quotes, and the buyer picks the one they like. It's a standard mechanism in traditional finance for large or less liquid trades, and it's now being applied to xStocks on Hyperliquid.
For tokenized equities, this could mean better pricing for buyers, since market makers are forced to compete. Instead of taking whatever price is on the order book, a buyer can solicit multiple quotes and choose the best one. The trade then settles onchain, meaning the transfer of ownership is recorded directly on the blockchain.
How the RFQ process works on Hyperliquid
The RFQ process on Hyperliquid starts when a buyer specifies the xStock they want and the quantity. The request is sent to market makers, who then submit their quotes. The buyer reviews the offers and selects the one that works best. The trade is executed and settled onchain, with the token moving from the seller to the buyer.
This is a departure from the continuous order book model, where trades happen automatically when buy and sell orders match. With RFQ, the buyer has more control over the price they pay, and market makers have a chance to compete for each order individually.
What xStocks are and why onchain settlement matters
XStocks are tokenized versions of equities. Each token represents a share of a company, and the tokens trade on Hyperliquid, a platform built for onchain settlement. That means the entire lifecycle of the trade, from quote to settlement, happens on the blockchain.
Onchain settlement is a key part of the appeal. When a trade is settled onchain, the ownership of the token is transferred directly between parties, with no need for a central clearinghouse. That reduces counterparty risk and speeds up the process. For xStocks, this means the trade is final once the transaction is confirmed on the blockchain.
What changes for market makers
For market makers, the launch opens up a new way to participate in tokenized equity trading. Instead of constantly updating quotes on an order book, they can respond to specific requests, which may be more efficient for larger or less liquid trades.
The move also signals that Silhouette is looking to bring more traditional trading mechanics to the tokenized asset space. Whether it catches on will depend on how many market makers sign up and how active the trading becomes.
Traders on Hyperliquid can now request quotes for xStocks, and market makers can submit their prices. The success of the model will depend on how many market makers choose to participate.
