Exclusive Interview with 'Hibachi', the Next-Generation Decentralized Perpetual DEX: Market Transformation through Stablecoin FX and Vision

Hibachi, a next-generation decentralized perpetual DEX, is designed to achieve speed, privacy protection, and verifiability simultaneously, with a cumulative trading volume exceeding $8 billion. It is currently building an FX exchange that covers both spot and derivative markets, geared towards a world where settlements are primarily in stablecoins.

By combining an off-chain central limit order book with on-chain zero-knowledge proofs, Hibachi uniquely enables instant transactions without disclosing trade details or positions, while still maintaining public verifiability.

As the use of stablecoins is expected to accelerate further, Hibachi is focusing on 'Stablecoin FX'.

In this edition, Iolite spoke with co-founders Varun and Chip to delve into Hibachi's strengths, its expansion in Japan, and its forward-looking vision.

──Please tell us about your backgrounds.

Varun: I am one of the co-founders of Hibachi, but before that, I co-founded a Request for Quote (RFQ) type DEX called 'Hashflow'. Prior to that, I was involved in developing satellite systems as an aerospace engineer. I started getting involved in trading around 2016-2017.

Chip: I have built my career as a market structure expert. Initially, I started as an options market maker and an FX interbank market trader.

Later, I moved into the technology field, serving as the global sales and strategy head at SunGard GMI, a back-office system for listed derivatives worldwide. I also served as the Chief Commercial Officer (CCO) at the Board of Trade Clearing Corporation, which guarantees and clears all trades made at the Chicago Board of Trade (CBOT), and at the Options Clearing Cooperation.

Afterward, I worked as an independent consultant, helping establish futures exchanges and clearing institutions in Africa, Asia, and Australia. Additionally, I was involved in strategic investments in financial market infrastructures, exchanges, and fintech companies at Morgan Stanley.

Interestingly, I also spent about a year consulting for the SBI Group in Tokyo. Since then, I have been working in the cryptocurrency and digital asset field.

──What led to the launch of Hibachi?

Varun: First about the name, we like Japan and were looking for a name related to 'fire'. During this process, we thought 'Hibachi', which means 'grill' in Japanese, was a perfect fit.

Last year, we launched a product with a privacy-focused Central Limit Order Book (CLOB). After analyzing the market, we realized that the FX market, which is not yet fully serviced, was our target.

Many exchanges copy models like Hyperliquid, which means they are 'perpetual DEXs' that handle 'everything' including 'point programs', 'Bitcoin (BTC)', and 'Ethereum (ETH) liquidity'.

However, we thought it was better to challenge a larger market rather than competing for the same user base in the cryptocurrency market. That's why we focused on FX.

The FX market is huge. Furthermore, with the proliferation of stablecoins, the stablecoin FX market could undergo significant transformation.

In the coming months, we plan to offer spot FX and derivatives, evolving into a more FX-focused format. Ultimately, our goal is to build a leading exchange for FX trading.

──Can you discuss the combination of a privacy-focused CLOB and Zero-Knowledge Proofs (ZKP) and how it differentiates you from other exchanges?

Varun: To be honest, infrastructure itself is no longer a differentiating factor.

Nowadays, anyone can create a privacy-focused exchange or a Layer 1 blockchain. What's important is 'which markets to target and which customers to serve'.

Hibachi's features include:

• Off-chain order books
• High-speed processing of approximately 0.007 seconds

We plan to support institutional investor APIs such as WebSocket and FIX Protocol in the future.

Moreover, having off-chain order books means that 'positions are not disclosed' and 'privacy is protected', which are crucial points for institutional investors.

On the other hand, the health of the exchange will be disclosed on-chain. This allows everyone to verify that it is operated soundly, preventing issues like those that led to the collapse of FTX.

──Can you tell us about your marketing strategy for the Japanese market?

Chip: To explain our targeting, it's essential first to understand the current state of the FX market.

The current FX market is a 'closed world' dominated by banks. About 70 major banks control the liquidity, and these banks extend credit lines to each other and set prices. If you're not one of these 70 banks, the inner workings are invisible to you, making it a very opaque market.

Moreover, the FX market itself lacks transparency. There are no public trading prices, and the actual trading times and transactions are not visible. Post-trade processing is also highly inefficient.

We describe the integration of stablecoins into the global FX market as 'emailing FX.' In the past, sending a letter involved writing on paper, sticking a stamp, and waiting 3-5 days for delivery.

However, with the advent of the internet and email, immediate sending and receiving became possible, and it was done at virtually no cost.

Let's replace this with stablecoins. If you exchange a dollar stablecoin for a yen stablecoin, the settlement is completed instantly. No bank account is needed, and the cost is very low.

Although we described the FX market as opaque, we are creating a market where all order histories are public, and anyone can trade at the best prices. Of course, measures against money laundering and KYC (Know Your Customer) are necessary.

Given this background, we are targeting 'fintech payment providers' and 'neobanks.' The reason is that they are well-versed in blockchain, hold wallets, and have experience in operations and protecting private keys.

We are also in discussions with many market makers. While individual investors are also a target, we believe our product offers benefits to hedge funds and asset management companies.

While specific strategies will be rolled out in the future, we see significant opportunities in Japan's large FX market.

──Can you explain the background and aims of your partnership with DeFimans? 

Varun: It all started when we met in South Korea in 2025.

Our team is based in the US, so we don't have much exposure in Asia, including Japan.

In this sense, the members of DeFimans play a significant and wonderful role in supporting our growth.

──Recently, Circle, the issuer of USDC, announced the use of the testnet for the developing Arc. Can you tell us about your partnership with Circle?

Varun: As stablecoins become more mainstream, USDC will play a very important role.

Furthermore, as more stablecoins emerge, many of them may be issued on Arc. This could concentrate stablecoin FX liquidity on Arc as well.

Additionally, Arc possesses privacy features at the Layer 1 blockchain level and has a mechanism to pay gas fees with USDC. This means users do not need to hold a separate token to pay gas fees. Indeed, Arc is an attractive entity for us.

Nevertheless, we are not dependent on any specific blockchain. In the future, we may integrate various blockchains.

──The regulatory environment surrounding stablecoins differs between Japan and the US; how do you view this situation?

Chip: The current situation is multifaceted and somewhat complex, as laws are being debated and adopted around the world.

One of the elements that make Hibachi special is ensuring that institutional investors and others can access it with confidence.

While we do not provide legal advice, we are considering a strategy to gradually comply with regulations, even in stricter regions.

──Currently, you have set up 'Hibachi Points', but do you plan to issue your own tokens eventually?

Varun: As of now, we have not made any announcements regarding tokens. If you hear information that 'Hibachi tokens are circulating,' please be aware that it is fake news. Naturally, we will announce if we decide to issue tokens. You will know the answer to this question at that time.

First, we need to focus on creating a truly good product and achieving product-market fit. Once we see results there, we can discuss the possibility of issuing tokens.

──For example, Backpack has revealed a scheme where points are issued as rewards, which can be exchanged for tokens and then staked for a year to potentially exchange for shares in the future. Is there room to implement such a mechanism at Hibachi?

Varun: I think it's a very smart way to align all interests involved with the product. Personally, I like this model. While I can't make any promises, it's definitely an interesting idea that we would like to explore.

──What is your vision for Hibachi five years from now?

Varun: Ambitiously, we aim to become the entity that replaces the interbank cartel that currently dominates today's FX market.

Chip: We don't know what disasters or misfortunes might occur in the cryptocurrency or stablecoin markets in the future. However, Hibachi aims to maintain the best governance and the fairest trading rules, ensuring transparency and a customer-first approach, thereby gaining trust from exchange users.

The reason markets function and hold value is the 'trust' built among those who trade. This is precisely our correct and lofty goal.

We aim to be the most trusted and best-governed exchange in the stablecoin FX space.

Hibachi Social Links

Official site: https://hibachi.xyz/
X (formerly Twitter): https://x.com/hibachi_xyz
Telegram: https://t.me/HibachiPatrons
Discord: https://discord.gg/hibachi-xyz

Profile

◉ Varun

Hibachi Co-founder

◉ Chip

Hibachi Co-founder