Payward, the corporate entity behind the popular cryptocurrency brokerage platform Kraken, has announced an ambitious new initiative aimed at expanding its product suite for American customers. The firm plans to introduce on‑chain perpetual futures contracts that will be built on the Hyperliquid protocol, a next‑generation decentralized trading engine that promises ultra‑low latency, high‑throughput order execution and transparent settlement on the blockchain. This move positions Payward to become the first U.S.‑registered exchange to bring a fully on‑chain derivatives market to retail and institutional traders within the United States, a milestone that could reshape the competitive landscape of crypto derivatives in the country.
The strategic decision follows Payward’s recent $550 million acquisition of Bitnomial, a U.S.‑based crypto‑options and futures platform that already holds a suite of regulatory approvals and a robust technology stack. By integrating Bitnomial’s licensed infrastructure with Hyperliquid’s cutting‑edge protocol, Payward aims to combine the best of both worlds: the compliance and custodial safeguards required by U.S. regulators and the speed, transparency, and decentralisation benefits of a blockchain‑native trading environment. The acquisition not only provides Payward with the necessary legal framework to operate derivatives products in the United States, but also supplies a ready‑made customer base and market‑making expertise that can be leveraged to seed liquidity on the new Hyperliquid markets.
Hyperliquid, originally conceived as a layer‑1 scaling solution for decentralized finance, distinguishes itself through a unique order‑matching engine that runs directly on the blockchain while still achieving millisecond‑level latency comparable to traditional centralized exchanges. The protocol utilizes a combination of state channels, optimistic rollups and a specialized consensus mechanism to ensure that trades are settled instantly and immutably, eliminating the counter‑party risk that typically plagues off‑chain derivatives platforms. For traders, this translates into real‑time price discovery, transparent order books that cannot be manipulated, and the ability to retain full custody of their collateral throughout the trading lifecycle. Payward’s rollout plan is being executed in several phases.
The first phase will involve a closed‑beta test with a select group of qualified U.S. investors, during which the firm will fine‑tune risk‑management parameters, verify compliance workflows, and gather feedback on user experience.
In this stage, participants will be able to trade perpetual futures on major crypto assets such as Bitcoin (BTC), Ethereum (ETH), and a curated basket of altcoins, all settled in a stablecoin pegged to the U.S. dollar. The second phase will open the markets to a broader audience, introducing additional contract specifications, leverage options up to 10x, and a suite of risk‑mitigation tools including automated liquidation safeguards and real‑time margin monitoring.
Regulatory compliance is a cornerstone of Payward’s approach. By operating under the Bitnomial license, the exchange will be subject to the same rigorous standards imposed by the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Payward has pledged to implement robust Know‑Your‑Customer (KYC) and Anti‑Money‑Laundering (AML) procedures, maintain segregated custodial accounts for client funds, and provide regular audit reports to regulators.
Moreover, the on‑chain nature of Hyperliquid allows for immutable audit trails, making it easier for auditors and supervisors to verify transaction histories and ensure market integrity. From a market‑making perspective, Payward intends to seed initial liquidity using its own capital and by partnering with established crypto market makers who specialize in providing depth to derivatives order books. The company believes that the combination of on‑chain transparency and deep liquidity will attract both retail traders seeking easy access to leveraged positions and institutional participants looking for a compliant, secure venue for hedging crypto exposure. Additionally, Payward plans to integrate advanced analytics and risk‑management dashboards that will give traders granular insight into open interest, funding rates, and liquidation heat maps, all displayed in real time.
The introduction of on‑chain perpetual futures also has broader implications for the crypto ecosystem. By demonstrating that a regulated U.S.
exchange can successfully deploy blockchain‑native derivatives, Payward hopes to set a precedent that encourages other custodians and brokers to explore similar integrations. This could accelerate the mainstream adoption of decentralized finance (DeFi) concepts within traditional financial institutions, bridging the gap between regulated markets and the open, permissionless world of blockchain. Critics, however, caution that the regulatory environment remains fluid.
The CFTC has signaled heightened scrutiny of crypto derivatives, and any misstep in compliance could result in enforcement actions. Payward acknowledges these risks and has assembled a dedicated legal and compliance team to monitor evolving guidance, engage with regulators proactively, and adjust its product offerings as needed to stay within the bounds of the law. In summary, Payward’s plan to launch on‑chain perpetual futures on the Hyperliquid protocol represents a bold convergence of regulated exchange infrastructure and innovative decentralized technology.
Leveraging the $550 million Bitnomial acquisition, the company is poised to become the first U.S.‑registered exchange to offer a fully on‑chain derivatives market, delivering faster settlement, greater transparency, and robust compliance to American traders. If successful, this initiative could pave the way for a new generation of hybrid crypto trading platforms that combine the safety and oversight of traditional finance with the efficiency and openness of blockchain, reshaping how derivatives are traded in the United States and beyond.