Hyperliquid has identified Payward, the parent company of cryptocurrency exchange Kraken, as its intended first US-regulated operator of perpetual futures markets on its blockchain infrastructure, subject to regulatory approval.The announcement, made on 26 October, establishes the proposed framework for bringing derivatives trading onto Hyperliquid through entities registered with the US Commodity Futures Trading Commission (CFTC). Payward would use the network's HIP-3 market deployment system, incorporating additional controls designed for regulated financial institutions.
Bitnomial, Payward's CFTC-regulated exchange and clearinghouse, would create, administer, clear and settle the proposed contracts. NinjaTrader Clearing, another Payward subsidiary registered as a futures commission merchant, would maintain customer accounts and handle brokerage responsibilities.
The arrangement remains conditional on regulatory authorisation. Neither Hyperliquid nor Payward has announced a confirmed launch date, and the permissioned-market technology required for the proposed operation remains under development.
Hyperliquid said its HIP-3* framework would introduce optional access restrictions allowing approved market operators to determine which participants can trade. These restrictions would operate through blockchain-based permission lists controlled by individual market deployers.
Under Payward's proposed structure, customers would need to complete NinjaTrader's onboarding procedures and appear on permission lists maintained by both NinjaTrader and Bitnomial before accessing the contracts.
The restrictions would distinguish the planned markets from Hyperliquid's existing decentralised trading arrangements, where participation generally operates without the same institutional onboarding requirements.
Hyperliquid would provide the underlying blockchain infrastructure, including its order book and transaction processing systems. Responsibility for regulatory compliance, market administration and customer relationships would remain with Payward's licensed subsidiaries.
The protocol developer emphasised that the permissioned functionality would be optional and would not alter existing HIP-3 markets. Independent deployers would continue controlling their respective markets and assuming responsibility for their operations.
A preliminary implementation of HIP-3* is available on Hyperliquid's test network. Its technical specifications could change following testing and feedback before the functionality becomes available on the production network.
Payward originally disclosed its intention to establish regulated perpetual futures markets on Hyperliquid on 16 September. The latest announcement provides further details about how the blockchain infrastructure could accommodate regulated operators.
Arjun Sethi, Payward's co-chief executive, said in September that the company intended to become the first registered US exchange and clearinghouse deploying markets on Hyperliquid.
Sethi said the company's approach would combine its existing regulatory responsibilities with infrastructure developed outside conventional financial exchanges.
Payward already offers perpetual futures to eligible US customers through regulated entities. Its proposed Hyperliquid deployment would introduce an additional trading infrastructure rather than establish its first domestic perpetual futures business.
Perpetual futures are derivatives contracts that allow traders to take positions on asset prices without a predetermined expiry date. Unlike conventional futures, they can remain open while traders satisfy applicable margin and settlement requirements.
The contracts frequently involve leverage, which can magnify gains and losses. Their operation therefore raises questions about collateral management, liquidation procedures, market surveillance and protections for customers trading through regulated intermediaries.
Payward's proposal would place clearing and settlement within Bitnomial's regulated structure while using Hyperliquid's public blockchain to support trading activity.
Jon Pham, Payward's head of US derivatives, previously explained that customers would open futures accounts through the company's registered broker and trade contracts cleared by the same clearinghouse supporting its existing US cryptocurrency perpetual futures.
The arrangement would preserve distinct responsibilities across the participating companies. Bitnomial Exchange would operate as the designated contract market, while Bitnomial Clearinghouse would serve as the derivatives clearing organisation.
NinjaTrader Clearing would function as the customer-facing futures commission merchant, carrying accounts under its applicable regulatory obligations.
The proposed model also illustrates how permissioned trading systems could operate alongside public blockchain infrastructure without transferring compliance responsibilities to the underlying protocol.
Hyperliquid's approach allows market deployers to establish their own participation requirements while retaining the network's order-book architecture.
The company has not specified whether the proposed markets would include additional identity-verification mechanisms directly within the blockchain protocol. Customer eligibility would nevertheless depend on the onboarding and permissioning arrangements described by Payward.
Payward has also indicated that Hyperliquid would be the first blockchain protocol used for this initiative, leaving open the possibility of deployments elsewhere.
The planned contracts would be listed under Bitnomial Exchange rules, subject to the required regulatory approvals.
Payward said its existing infrastructure supports customers across more than 190 countries and territories. The group reported 6.6 million funded accounts as of 30 June 2026, providing an indication of the wider customer network behind its proposed derivatives operation.
Topics
Cryptocurrency