Payward, the corporate entity behind the well‑known cryptocurrency brokerage Kraken, has announced an ambitious roadmap to bring on‑chain perpetual futures to retail and institutional investors in the United States. The move follows the firm’s recent $550 million acquisition of Bitnomial, a U.S.-based derivatives platform that already holds a suite of regulatory approvals and a robust technology stack for futures trading. By integrating Bitnomial’s licensed infrastructure with the cutting‑edge Hyperliquid protocol, Payward aims to become the first fully registered U.S.
exchange to offer perpetual futures that settle directly on a blockchain, thereby marrying traditional compliance frameworks with the transparency and efficiency of decentralized finance. The strategic rationale behind the plan is two‑fold. First, Payward wants to capture a growing demand among U.S. traders for sophisticated derivative products that are typically only available on offshore or unregulated venues.
Perpetual futures—contracts that mimic the price movements of an underlying asset without an expiration date—have become a staple of crypto trading, offering leveraged exposure and the ability to go long or short. However, most U.S. participants have been forced to use foreign exchanges, exposing them to regulatory uncertainty and potential custodial risks. By launching a compliant, on‑chain version, Payward can provide a safe, regulated gateway that satisfies both investor appetite and the stringent requirements of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Second, the adoption of the Hyperliquid protocol gives Payward a technical edge. Hyperliquid is a layer‑1‑agnostic, high‑throughput smart‑contract framework designed specifically for derivatives trading. It leverages zero‑knowledge proofs and state‑channel techniques to achieve sub‑second settlement, low transaction fees, and immutable order books that are auditable by anyone on the network.
For users, this translates into near‑instant trade execution, reduced slippage, and the confidence that their positions are recorded on a public ledger rather than a proprietary database. For regulators, the on‑chain nature of the market provides an unprecedented level of transparency, making it easier to monitor market abuse, enforce position limits, and verify that the exchange is adhering to capital and margin requirements. Payward’s integration plan will unfold in several phases.
The initial step involves migrating Bitnomian’s existing futures contracts—primarily Bitcoin and Ethereum perpetuals—onto the Hyperliquid smart‑contract suite. This migration will retain the same contract specifications (e.g., funding rates, leverage caps) that traders are accustomed to, while embedding them in a blockchain environment. During this phase, Payward will conduct extensive testing on testnets to ensure that order matching, margin calculations, and liquidation mechanisms function flawlessly under real‑world stress scenarios. Once the technical foundation is validated, the company will seek final regulatory clearance from the CFTC and the SEC.
Because the platform will be fully registered as a futures commission merchant (FCM) and a designated contract market (DCM), Payward will be required to submit detailed compliance documentation, including its anti‑money‑laundering (AML) policies, know‑your‑customer (KYC) procedures, and risk‑management frameworks. The on‑chain auditability of Hyperliquid is expected to simplify many of these reporting obligations, as transaction data can be exported directly from the blockchain for regulatory review. After regulatory approval, Payward plans a phased rollout to its existing user base.
Existing Kraken accounts will receive automatic eligibility to trade the new on‑chain perpetuals, subject to standard KYC verification. New users will be able to sign up through a streamlined onboarding flow that integrates wallet creation, fiat on‑ramps, and compliance checks in a single interface.
Payward also intends to launch an educational portal that explains the nuances of perpetual futures, the benefits of on‑chain settlement, and the risks associated with leveraged trading, thereby promoting responsible participation. From a market‑making perspective, Payward will partner with a consortium of liquidity providers who will supply depth to the order book and help maintain tight bid‑ask spreads. Because Hyperliquid’s protocol supports automated market‑making (AMM) modules alongside traditional order‑book models, Payward can offer hybrid liquidity solutions that adapt to varying market conditions. Additionally, the firm will introduce a native incentive token that rewards liquidity providers and active traders with fee rebates, further enhancing market resilience.
The broader industry impact of Payward’s initiative could be significant. By demonstrating that a regulated U.S. exchange can successfully operate a decentralized derivatives market, the company may set a precedent that encourages other incumbents to explore similar integrations.
This could accelerate the convergence of centralized finance (CeFi) and decentralized finance (DeFi), fostering a more interoperable ecosystem where regulatory compliance and blockchain transparency coexist. Nevertheless, challenges remain. Scaling on‑chain order matching to handle the high throughput demanded by U.S.
futures markets requires rigorous performance optimization and robust fallback mechanisms in case of network congestion. Moreover, the firm must navigate the evolving regulatory landscape, where lawmakers are still debating the classification of crypto derivatives and the appropriate oversight mechanisms. Payward’s proactive engagement with regulators, combined with its commitment to transparency through Hyperliquid, will be critical to mitigating these risks. In summary, Payward’s plan to launch on‑chain perpetual futures for U.S.
clients leverages its recent Bitnomial acquisition and the advanced capabilities of the Hyperliquid protocol to create a regulated, transparent, and high‑performance derivatives platform. By bridging the gap between traditional financial compliance and blockchain innovation, the company aims to set a new standard for crypto futures trading in the United States, offering traders a secure, efficient, and auditable way to gain leveraged exposure to digital assets.