Kraken’s parent plans Hyperliquid launch for regulated US perpetual futures

• Kraken parent Payward will become the first CFTC-regulated deployer of perpetual futures on HIP-3 infrastructure, Hyperliquid announced.
• With optional on-chain allowlists introduced by HIP-3*, deployers can limit market access while retaining independent control of their markets.
• Plans previously set out by Payward envisaged extending perpetual futures models to individual stocks using Bitnomial’s regulated exchange and clearing services.

Payward, the parent of crypto exchange Kraken, is set to become the first Commodity Futures Trading Commission (CFTC)-regulated deployer on HIP-3 markets under plans announced by Hyperliquid (HYPE).

Payward plans permissioned Hyperliquid markets using HIP-3

Writing on X in a post on Monday, Hyperliquid said its infrastructure would be used by Payward to deploy perpetual futures markets for US customers. Regulatory approval is still required for the proposed arrangement.

The proposal would see Bitnomial, Payward’s CFTC-regulated designated contract market (DCM) and derivatives clearing organisation (DCO), establish, own and manage the markets, alongside clearing and settling contracts.

Subject to approval, client accounts would be carried by NinjaTrader Clearing, Payward’s CFTC-registered futures commission merchant (FCM).

By moving towards regulated derivatives trading on Hyperliquid’s on-chain infrastructure, the announcement represents a step forward, while market operations and regulatory duties would remain with the independent deployer.

Hyperliquid wrote: “Payward will use Hyperliquid as the infrastructure layer to deploy perpetual futures markets for US clients,”

Hyperliquid sets out permissioned market framework under HIP-3*

HIP-3*, the extension of Hyperliquid’s HIP-3 framework that adds optional permissioned markets, will underpin the proposed deployment. Deployers can use the feature to limit access through on-chain allowlists, which they or their sub-deployers manage.

A future network upgrade will add support for the additional configuration, according to Hyperliquid. Although an initial version is available on testnet, its specifications are preliminary and may change in response to feedback.

Existing markets will not change, the protocol stressed, as HIP-3* is an optional addition to HIP-3. With Hyperliquid providing the underlying infrastructure, independent deployers will continue to control their own markets and remain responsible for them.

The latest announcement follows the statement issued by Payward on 16 September, when it set out its intention to offer on-chain perpetual futures to US clients, starting with Hyperliquid’s HIP-3 markets.

In that announcement, Payward said market deployment, clearing and settlement would be handled by Bitnomial, with customer accounts carried by NinjaTrader Clearing. It also described a restricted-access model requiring customers to complete NinjaTrader onboarding and be included on the allowlists of both NinjaTrader and Bitnomial.

In September, Payward Co-CEO Arjun Sethi said the company aimed to be the first registered US exchange and clearinghouse to deploy markets on Hyperliquid.

Under the proposal, Payward’s regulated exchange, clearing and brokerage infrastructure would be combined with Hyperliquid’s public blockchain and on-chain order book. Bitnomial Exchange’s rules would govern contract listings, while each relevant regulated entity would retain its own obligations.

Regulatory approval for Payward’s deployment remains outstanding, however. With the initial HIP-3* implementation still on testnet, Hyperliquid has not yet confirmed when the proposed markets will launch.

At the time of writing, HYPE trades at $77.50 following a rise of nearly 3% over the past 24 hours.