Hyperliquid Partners with Payward for Regulated US Perpetual Futures

Hyperliquid Unveils Permissioned Futures Framework, Kraken Parent Eyes US Market Entry

Hyperliquid has announced plans to launch permissioned perpetual futures markets via its new HIP-3* framework. Payward, the parent company of cryptocurrency exchange Kraken, intends to be the first CFTC-regulated entity to offer these products to U.S. customers.

New Framework for Regulated Derivatives

Under the proposed arrangement, Payward will leverage Hyperliquid’s infrastructure to deploy perpetual futures markets for its U.S. clientele. The specific details indicate that Payward’s CFTC-regulated exchange and clearinghouse, Bitnomial, will be responsible for creating, administering, clearing, and settling the perpetual futures contracts. NinjaTrader Clearing, a registered futures commission merchant owned by Payward, will manage customer accounts. This initiative is contingent upon regulatory approval.

HIP-3* Enhances Market Access

The HIP-3 framework is an extension of Hyperliquid’s existing HIP-3 infrastructure, which already enables independent developers to launch perpetual futures markets for a range of assets, including cryptocurrencies, equities, and commodities. The key innovation of HIP-3 lies in its introduction of optional permissioned markets. These markets will utilize on-chain allowlists, managed by individual deployers or their designated operators, to control access.

This feature empowers market operators to define which accounts are permitted to trade their contracts, facilitating the creation of markets that adhere to specific regulatory requirements. Unlike the current permissionless HIP-3 markets, these new deployments can restrict access to pre-approved participants while still utilizing Hyperliquid’s core blockchain and order book technology. Hyperliquid has emphasized that this new functionality is additive, meaning existing HIP-3 markets will remain unaffected, and deployers can opt in to permissioned access. The initial implementation is currently available on a testnet, with potential adjustments expected before a future network upgrade.

Strategic Move to Address US Market Restrictions

The framework is designed to allow independent operators to introduce regulated financial products while maintaining responsibility for their own markets, rather than placing the compliance burden on Hyperliquid itself. This announcement follows a September 16 agreement between Payward and Hyperliquid to explore the introduction of regulated perpetual futures to U.S. customers. The latest development provides a clearer picture of how this collaboration will materialize, with Bitnomial positioned as the regulated market operator.

This move comes as Hyperliquid seeks to circumvent regulatory hurdles that have previously prevented U.S. residents from accessing its existing perpetual futures markets. Despite its standing as a prominent decentralized derivatives platform, Hyperliquid has operated without direct access to the U.S. market, limiting its reach to American traders. The proposed structure involving Payward could offer a viable pathway into this market by enabling regulated entities to offer perpetual futures using Hyperliquid’s infrastructure, without necessitating the blockchain itself to be registered as a regulated exchange.

Market Reaction

The announcement had a brief impact on Hyperliquid’s native token, HYPE, which surged above $80 before settling around $79.65 at press time. This rebound followed a broader cryptocurrency sell-off over the weekend, which had seen HYPE dip near $74 on Saturday. Bitcoin also experienced a decline below $79,000 during the weekend before recovering above $80,000 on Monday morning.