Payward, the parent company behind the well‑known cryptocurrency trading platform Kraken, has announced an ambitious roadmap that could reshape the landscape of derivatives trading for American investors. The firm plans to introduce on‑chain perpetual futures contracts to its U.S.

client base by leveraging the Hyperliquid protocol, a cutting‑edge decentralized finance (DeFi) infrastructure that enables high‑speed, low‑latency trading of perpetual contracts directly on a blockchain. This move is being made possible largely thanks to Payward’s recent $550 million acquisition of Bitnomial, a U.S.‑based digital‑asset brokerage that already holds a registered status with the U.S.

Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). By integrating Bitnomial’s regulatory approvals with Hyperliquid’s technology, Payward aims to become the first fully registered U.S. exchange to launch on‑chain perpetual futures, a product class that has traditionally been confined to centralized platforms operating in a regulatory gray area.

### The Strategic Rationale Behind the Acquisition Bitnomial’s purchase was not merely a financial transaction; it represented a strategic entry point for Payward into the highly regulated U.S. derivatives market.

Bitnomial holds a Series 3 Limited Purpose Trust Company charter in the state of New York and a Commodity Futures Trading Commission registration as a futures commission merchant (FCM). These licenses grant the firm the legal authority to offer futures and swaps products to U.S. customers, provided it adheres to strict reporting, capital, and risk‑management standards.

By acquiring Bitnomial, Payward instantly inherits these licenses, bypassing a lengthy and uncertain application process that could have taken years. Moreover, Bitnomial brings a seasoned compliance team, an established client onboarding pipeline, and a suite of back‑office tools designed for the U.S. market. This infrastructure is essential for meeting the rigorous anti‑money‑laundering (AML) and know‑your‑customer (KYC) requirements imposed by U.S.

regulators. Payward can now focus on the technological integration required to bring Hyperliquid’s protocol to a regulated environment, rather than starting from scratch on compliance. ### Why Hyperliquid? Hyperliquid is a relatively new protocol that distinguishes itself from other DeFi platforms by offering near‑instant settlement and sub‑second latency, qualities that are critical for futures trading where price movements can be rapid and execution speed directly impacts profitability.

The protocol achieves this performance by employing a hybrid architecture: order matching occurs off‑chain in a highly optimized matching engine, while settlement and custody remain on‑chain, ensuring the immutability and transparency that blockchain users expect. Another key advantage is Hyperliquid’s on‑chain risk management framework. The protocol uses automated liquidation mechanisms that are encoded in smart contracts, reducing the need for manual intervention and limiting counterparty risk. For a regulated exchange like Payward, these features align well with the CFTC’s emphasis on robust risk controls and market integrity.

### Regulatory Landscape and Compliance Introducing on‑chain perpetual futures to U.S. investors is not a straightforward endeavor. The CFTC classifies perpetual futures as swaps, which fall under the Commodity Exchange Act.

This classification requires the exchange to register as a designated contract market (DCM) or a swap execution facility (SEF), maintain segregation of customer funds, and submit regular transaction reports to the CFTC’s Swap Data Repository. Payward’s plan involves using Bitnomial’s existing DCM registration as a foundation while seeking any additional approvals necessary for the on‑chain component.

The firm will need to demonstrate that the smart‑contract based settlement process meets the same standards of transparency, auditability, and risk mitigation as traditional clearinghouses. To that end, Payward intends to work closely with the CFTC’s Office of Financial Innovation and the SEC’s Division of Trading and Markets, providing detailed technical documentation, third‑party security audits, and ongoing compliance monitoring. ### Product Design and User Experience The perpetual futures that Payward intends to launch will be collateralized in major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and stablecoins like USDC.

Traders will be able to take long or short positions with leverage ranging from 1x up to 10x, depending on the asset class and market conditions. Unlike traditional futures that have a fixed expiry date, perpetual contracts on Hyperliquid are designed to trade continuously, with funding rates applied periodically to keep the contract price aligned with the underlying spot price. From a user‑interface perspective, Payward plans to integrate the new products into its existing Kraken platform, offering a seamless experience for both retail and institutional clients.

The interface will feature real‑time price charts, risk‑management tools such as stop‑loss and take‑profit orders, and a clear breakdown of funding rates and liquidation thresholds. Educational resources, webinars, and dedicated support channels will accompany the launch to help users understand the nuances of on‑chain derivatives trading. ### Market Impact and Competitive Positioning If successful, Payward’s on‑chain perpetual futures could set a new benchmark for regulated crypto derivatives in the United States.

Competitors like CME Group, Bakkt, and other crypto‑focused exchanges have been exploring ways to incorporate blockchain technology into their products, but none have yet achieved a fully compliant, on‑chain solution that combines the speed of centralized order books with the transparency of decentralized settlement. By being the first to market, Payward could capture a significant share of the growing demand for leveraged crypto exposure among U.S.

investors, many of whom are currently limited to margin trading on centralized platforms that operate without clear regulatory oversight. Additionally, the on‑chain nature of Hyperliquid may attract institutional participants seeking provable custody and audit trails, further expanding the addressable market. ### Timeline and Future Outlook Payward has outlined a phased rollout plan. The first phase, slated for the second quarter of 2025, will involve a closed‑beta test with a select group of qualified traders, focusing on system stability, compliance checks, and user feedback.

Following a successful pilot, the second phase—targeted for the fourth quarter of 2025—will open the perpetual futures market to all U.S. clients who meet the necessary eligibility criteria.

Looking ahead, Payward envisions extending the Hyperliquid integration beyond perpetual futures to include options, synthetic assets, and possibly cross‑chain derivatives that leverage assets on other Layer‑1 blockchains. The firm also intends to explore partnerships with liquidity providers and market makers to ensure deep order books and competitive pricing from day one.

In summary, Payward’s acquisition of Bitnomial and its strategic partnership with Hyperliquid position the company at the forefront of a regulatory‑compliant, on‑chain derivatives revolution in the United States. By marrying robust compliance frameworks with cutting‑edge blockchain technology, Payward aims to deliver a product that offers both the speed and efficiency demanded by modern traders and the transparency and safety required by regulators, potentially reshaping the future of crypto derivatives trading for American investors.