Payward, the corporate entity behind the well‑known cryptocurrency brokerage platform Kraken, has announced an ambitious roadmap that could reshape the landscape of derivatives trading for American investors. The firm’s strategy centers on the introduction of on‑chain perpetual futures contracts that will be accessible to U.S.
clients through the Hyperliquid protocol, a cutting‑edge decentralized finance (DeFi) infrastructure that promises high‑speed settlement, low latency, and transparent order‑book mechanics. The backdrop to this initiative is Payward’s recent acquisition of Bitnomial, a New York‑based fintech firm that specializes in options and futures market‑making technology.
The transaction, valued at roughly $550 million, provides Payward with a robust suite of proprietary tools, a seasoned engineering team, and an existing regulatory framework that can be leveraged to meet the stringent compliance requirements of the U.S. securities environment. By integrating Bitnomial’s technology stack with Hyperliquid’s on‑chain engine, Payward aims to deliver a hybrid solution that blends the safety and oversight of a registered exchange with the efficiency and programmability of blockchain‑based trading. One of the core motivations behind the move is the growing demand among U.S.
traders for perpetual futures that are settled directly on a blockchain rather than through traditional clearinghouses. Perpetual contracts, which have no fixed expiration date, allow participants to maintain leveraged exposure to underlying assets such as Bitcoin, Ethereum, and a range of altcoins.
When these contracts are executed on‑chain, settlement occurs automatically via smart contracts, eliminating the need for intermediaries and reducing counterparty risk. Moreover, on‑chain settlement offers unparalleled transparency: every trade, margin call, and funding payment is recorded immutably on the ledger, enabling regulators, auditors, and users to verify activity in real time. Hyperliquid, the protocol selected for this venture, distinguishes itself from other DeFi derivatives platforms through its focus on order‑book depth and latency‑critical performance.
Built on a layer‑2 scaling solution, Hyperliquid can process thousands of transactions per second while maintaining sub‑second finality. This capability is essential for perpetual futures, where price movements can be swift and margin requirements must be updated continuously.
By tapping into Hyperliquid’s architecture, Payward expects to offer U.S. traders execution speeds that rival, and potentially surpass, those of traditional centralized exchanges.
Regulatory compliance is a paramount concern for any entity seeking to operate a derivatives marketplace in the United States. Payward’s plan includes obtaining registration as a futures commission merchant (FCM) and a designated contract market (DCM) with the Commodity Futures Trading Commission (CFTC). The acquisition of Bitnomial provides a ready‑made compliance scaffold, as Bitnomial already holds the necessary licenses and has established relationships with clearing partners. Payward intends to augment this foundation with rigorous Know‑Your‑Customer (KYC) and Anti‑Money‑Laundering (AML) protocols that are integrated directly into the onboarding flow for Hyperliquid users.
Smart‑contract based KYC checks will be combined with off‑chain verification to satisfy both regulatory mandates and the privacy expectations of crypto‑savvy participants. From a product perspective, the on‑chain perpetual futures offering will initially cover the most liquid cryptocurrency pairs, including BTC‑USD, ETH‑USD, and a basket of major altcoins.
Each contract will feature a funding rate mechanism that aligns the perpetual price with the underlying spot market, thereby preventing significant divergence over time. Traders will be able to select leverage levels ranging from 1x up to 20x, with margin requirements automatically calculated and enforced by the underlying smart contracts. In the event of a margin shortfall, the protocol’s liquidation engine will execute swift, transparent liquidations to protect the integrity of the market and the safety of other participants. Payward also plans to introduce a suite of risk‑management tools that are currently standard on its centralized platform but have been largely absent from DeFi derivatives venues.
These tools include real‑time position monitoring dashboards, customizable stop‑loss and take‑profit orders, and advanced analytics that break down funding history, open‑interest trends, and order‑book depth. By delivering these features on‑chain, Payward hopes to bridge the gap between the user experience of traditional exchanges and the innovative capabilities of decentralized finance. The strategic timing of this rollout aligns with broader industry trends.
Institutional investors are increasingly allocating capital to crypto assets, and many are seeking regulated avenues to gain exposure to leveraged positions without the operational complexities of managing separate custodial arrangements. An on‑chain perpetual futures market that is both regulated and interoperable with existing DeFi infrastructure could serve as a compelling entry point for these participants.
In addition to the immediate product launch, Payward has signaled its intention to expand the Hyperliquid ecosystem over the coming years. Potential future developments include the introduction of options contracts, synthetic assets that track non‑crypto indices, and cross‑margin capabilities that allow users to allocate collateral across multiple contract types. The company is also exploring partnerships with liquidity providers and market makers to ensure deep order‑book depth, which is essential for maintaining tight spreads and reducing slippage for high‑volume traders.
From a technical standpoint, the integration will involve a multi‑layered architecture. At the base layer, Hyperliquid’s smart contracts will handle order matching, trade execution, and settlement.
Above this, Payward will deploy a suite of off‑chain services that perform risk calculations, compliance checks, and user‑interface rendering. These services will communicate with the blockchain via secure APIs, ensuring that all critical state changes are anchored on‑chain while allowing for responsive, low‑latency user experiences.
Security remains a top priority throughout the development cycle. Payward will conduct extensive audits of both the Hyperliquid codebase and the custom modules it introduces. Independent third‑party auditors will be engaged to review smart‑contract logic, verify that liquidation mechanisms are robust, and assess the overall resilience of the system against attacks such as front‑running, flash loan exploits, and oracle manipulation. In parallel, a bug‑bounty program will be launched to incentivize the broader security community to identify and report vulnerabilities before the public launch.
In summary, Payward’s plan to offer on‑chain perpetual futures to U.S. clients via the Hyperliquid protocol represents a convergence of regulatory compliance, advanced technology, and market demand. By leveraging the $550 million Bitnomial acquisition, the firm is positioned to become the first registered exchange in the United States to provide a fully on‑chain derivatives marketplace. The initiative promises faster settlement, greater transparency, and a richer set of trading tools, all while adhering to the rigorous standards set by the CFTC and other regulatory bodies.
If successful, this venture could set a new benchmark for how traditional financial institutions and crypto‑native platforms collaborate to deliver next‑generation financial products to a broader audience.