Payward Sets Sights on Launching On‑Chain Perpetual Futures for U.S. Clients via Hyperliquid

Payward, the corporate entity behind the well‑known cryptocurrency brokerage platform Kraken, has announced an ambitious plan to bring on‑chain perpetual futures to U.S. customers. The move is anchored in the company’s recent $550 million acquisition of Bitnomial, a U.S.‑based digital‑asset brokerage and clearing firm that has already secured a federal charter to operate as a registered exchange.

By integrating Bitnomian’s regulatory approvals and operational infrastructure with Payward’s extensive market‑making expertise, the combined organization aims to be the first U.S.‑registered exchange to launch perpetual futures that settle directly on the Hyperliquid protocol, a cutting‑edge, permission‑less layer‑2 solution designed for high‑throughput, low‑latency derivatives trading. ### The Strategic Rationale Behind the Acquisition The Bitnomial deal, completed in early 2024, was more than a simple expansion of Payward’s U.S.

footprint. Bitnomial holds a Series 1 broker‑dealer license, a custodial trust charter, and a registration as a futures commission merchant (FCM) with the Commodity Futures Trading Commission (CFTC).

These licences collectively give Payward a ready‑made regulatory scaffold that would otherwise take years to construct from scratch. Moreover, Bitnomial’s existing technology stack—particularly its clearing and settlement engine—offers a proven, compliant backbone for handling margin, collateral, and position‑risk management in a regulated environment. By acquiring Bitnomial, Payward not only gains immediate access to the U.S.

market but also inherits a team of compliance professionals, legal counsel, and risk officers who are already versed in the nuances of U.S. securities and commodities law. ### Why Hyperliquid?

Hyperliquid is a relatively new protocol that emerged from the broader DeFi ecosystem with a focus on delivering institutional‑grade performance for derivatives. It operates as a layer‑2 roll‑up on Ethereum, employing optimistic roll‑up techniques and zero‑knowledge proofs to achieve sub‑second finality while maintaining the security guarantees of the underlying blockchain.

For traders, this translates into near‑instant order execution, deep liquidity, and transparent settlement that is recorded immutably on‑chain. For regulators, the on‑chain nature of the trades provides an audit trail that can be accessed in real time, simplifying reporting obligations and enhancing market integrity. Payward’s decision to use Hyperliquid is driven by several factors: 1.

**Scalability**: Hyperliquid can process tens of thousands of transactions per second, a requirement for perpetual futures that attract high‑frequency traders. 2.

**Transparency**: Every trade, margin adjustment, and liquidation event is written to the blockchain, offering unprecedented visibility for auditors and regulators. 3. **Cost Efficiency**: By settling on‑chain, Payward can reduce reliance on legacy clearing houses, lowering operational costs and potentially passing savings to customers. 4.

**Interoperability**: Hyperliquid’s open‑source architecture allows seamless integration with existing order‑management systems, wallets, and market data feeds. ### Regulatory Landscape and Compliance Launching a perpetual futures product in the United States is not merely a technical challenge; it is a regulatory marathon.

The CFTC classifies perpetual contracts as futures, meaning they fall under the Commodity Exchange Act (CEA) and must adhere to strict reporting, margin, and position‑limit rules. Payward plans to leverage Bitnomial’s FCM registration to satisfy these requirements, while also filing a new futures product offering with the CFTC’s Division of Market Oversight. In parallel, the Securities and Exchange Commission (SEC) will be consulted to ensure that any tokenized assets underlying the futures do not inadvertently trigger securities law provisions. Payward intends to implement a multi‑layered compliance framework that includes: - **Real‑time transaction monitoring** using AI‑driven analytics to detect suspicious activity, market manipulation, or wash trading.

- **Robust KYC/AML procedures** integrated with Bitnomial’s existing identity verification platforms, ensuring that every participant is vetted against the Office of Foreign Assets Control (OFAC) and other watchlists. - **Margin and collateral management** that complies with the CFTC’s net‑capital rules, with automated stress‑testing to guarantee that the exchange can withstand extreme market volatility. - **Public reporting** of trade data via the CFTC’s Large Trader Reporting system and the SEC’s Market Data Infrastructure, facilitated by the immutable on‑chain ledger of Hyperliquid.

### Market Impact and Competitive Positioning If successful, Payward’s on‑chain perpetual futures offering could reshape the U.S. derivatives landscape. Traditional futures exchanges such as CME Group and CBOE have long dominated the space, but they rely on centralized clearing houses and legacy technology that can introduce latency and opacity. By contrast, a Hyperliquid‑based solution promises faster execution, lower fees, and greater transparency—attributes that are increasingly attractive to both retail traders and institutional investors seeking to hedge crypto exposure.

Competitors like Binance US, Coinbase, and Kraken’s own U.S. arm have already launched spot and futures products, but none have yet combined a regulated U.S. exchange charter with a fully on‑chain settlement layer. Payward’s approach could therefore give it a first‑mover advantage, positioning the firm as a bridge between the regulated finance world and the decentralized finance ecosystem.

### Timeline and Future Roadmap Payward has outlined a phased rollout plan: - **Q4 2024**: Completion of integration between Bitnomial’s clearing engine and Hyperliquid’s smart contracts, along with the filing of necessary CFTC product disclosures. - **Q1 2025**: Beta launch for a limited group of accredited investors, focusing on Bitcoin and Ethereum perpetual contracts with modest leverage limits. - **Q2 2025**: Full public launch, expanding the product suite to include additional crypto assets such as Solana, Avalanche, and emerging layer‑1 tokens. Leverage caps will be adjusted based on market demand and risk assessments.

- **2026 and beyond**: Introduction of novel derivatives such as options on perpetual futures, cross‑asset spreads, and tokenized index contracts, all settled on‑chain via Hyperliquid. Throughout this timeline, Payward commits to ongoing dialogue with regulators, industry groups, and the broader crypto community to refine its compliance posture and ensure that the platform remains secure, fair, and accessible.

### Conclusion Payward’s strategy to leverage its $550 million acquisition of Bitnomial and to become the first U.S.‑registered exchange to offer on‑chain perpetual futures on the Hyperliquid protocol reflects a bold convergence of regulatory compliance, cutting‑edge blockchain technology, and market demand for high‑performance derivatives. By marrying Bitnomial’s licensed infrastructure with Hyperliquid’s scalable, transparent settlement engine, Payward aims to deliver a product that satisfies both the stringent requirements of U.S. regulators and the speed and cost expectations of modern traders.

If executed as planned, this initiative could set a new standard for how crypto‑derived futures are offered in the United States, potentially prompting other exchanges to explore similar on‑chain solutions and accelerating the broader adoption of decentralized finance principles within the regulated financial system.