Payward, the corporate entity behind the well‑known cryptocurrency brokerage Kraken, has announced an ambitious roadmap to bring on‑chain perpetual futures to its U.S. clientele.
The plan hinges on a strategic partnership with Hyperliquid, a next‑generation decentralized finance (DeFi) protocol that specializes in high‑performance, low‑latency derivatives trading on public blockchains. By leveraging the infrastructure and liquidity mechanisms of Hyperliquid, Payward aims to offer U.S. traders a seamless, fully regulated avenue for accessing perpetual futures contracts that settle directly on the blockchain, thereby combining the safety and transparency of on‑chain settlement with the compliance standards required by U.S. financial regulators.
The initiative is underpinned by Payward’s recent $550 million acquisition of Bitnomial, a U.S.‑based crypto derivatives platform that had previously built a modest suite of futures products for retail and institutional users. The Bitnomial deal not only provided Payward with a ready‑made regulatory framework and a suite of existing licenses, but also granted the company a foothold in the U.S.
derivatives market that it could now expand upon using Hyperliquid’s technology stack. Payward’s leadership believes that integrating Bitnomial’s compliance infrastructure with Hyperliquid’s on‑chain execution engine will allow the company to become the first U.S.‑registered exchange to launch a fully on‑chain perpetual futures market.
Perpetual futures are a type of derivative contract that, unlike traditional futures, do not have an expiration date. Traders can hold positions indefinitely, subject to funding rate adjustments that align the contract price with the underlying asset’s spot price. In the traditional, centralized finance (CeFi) world, perpetual futures are typically settled off‑chain, with the exchange acting as the central counterparty.
This arrangement introduces counterparty risk, requires extensive custodial safeguards, and often limits transparency for end users. By contrast, an on‑chain perpetual futures product settles automatically via smart contracts, eliminating the need for a trusted intermediary to manage margin, liquidation, and funding payments. All of these processes are encoded in immutable code, offering participants provable fairness and auditability. Hyperliquid’s protocol distinguishes itself by delivering sub‑second transaction finality and high throughput, characteristics that are essential for derivatives markets where price movements can be rapid and liquidation events must be executed without delay.
The platform utilizes a combination of layer‑2 scaling solutions and novel order‑matching algorithms to achieve the performance levels typically associated with centralized exchanges, while retaining the decentralization benefits of blockchain technology. For Payward, this means that its U.S.
customers can enjoy the speed and reliability they expect from a leading exchange, while also benefiting from the security guarantees of a public ledger. From a regulatory perspective, Payward’s approach is designed to satisfy the stringent requirements of the U.S. Commodity Futures Trading Commission (CFTC) and other relevant authorities. By operating as a registered futures commission merchant (FCM) and a designated contract market (DCM), Payward will maintain the necessary oversight, reporting, and capital reserve obligations.
The integration of Bitnomial’s existing licensing ensures that the exchange already meets many of these criteria, while the on‑chain nature of the contracts introduces a layer of transparency that regulators are increasingly encouraging. Payward plans to work closely with the CFTC to define clear compliance protocols for on‑chain settlement, reporting, and anti‑money‑laundering (AML) controls. The launch timeline is expected to unfold over the next 12 to 18 months.
In the initial phase, Payward will conduct extensive testing on Hyperliquid’s testnet, simulating a wide range of market conditions, stress scenarios, and user interactions. This sandbox environment will allow the company to fine‑tune smart contract parameters, funding rate algorithms, and liquidation mechanisms before moving to a live mainnet deployment. Concurrently, Payward will engage in a public consultation process with regulators, industry stakeholders, and consumer advocacy groups to ensure that the product design aligns with both market demand and regulatory expectations.
Once the platform is live, U.S. traders will be able to trade perpetual futures on a variety of major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and a selection of high‑liquidity altcoins. The contracts will be collateralized in US‑dollar‑denominated stablecoins, providing a familiar risk‑management framework for participants accustomed to fiat‑backed margin accounts.
Additionally, Payward intends to introduce advanced order types, such as limit, stop‑loss, and take‑profit orders, all executed on‑chain via Hyperliquid’s order‑matching engine. This feature set aims to replicate the sophisticated trading tools available on traditional exchanges while preserving the benefits of decentralized settlement. Beyond the immediate product rollout, Payward envisions a broader ecosystem built around the Hyperliquid protocol.
The company plans to open its on‑chain futures infrastructure to third‑party developers through a set of application programming interfaces (APIs) and software development kits (SDKs). This open‑access model could spur the creation of novel financial products, such as leveraged token baskets, synthetic exposure to emerging crypto assets, and even cross‑asset derivatives that blend crypto with traditional securities. By fostering an ecosystem of innovators, Payward hopes to position itself as a hub for next‑generation financial engineering in the United States.
In summary, Payward’s strategy to launch on‑chain perpetual futures for U.S. clients represents a convergence of regulatory compliance, cutting‑edge blockchain technology, and market‑driven product design.
The $550 million acquisition of Bitnomial provides the regulatory backbone, while Hyperliquid supplies the high‑performance, decentralized execution layer necessary for modern derivatives trading. If successful, this initiative could set a new standard for how crypto derivatives are offered in regulated markets, delivering greater transparency, reduced counterparty risk, and enhanced trading efficiency for American investors.