Payward, the corporate entity behind the well‑known cryptocurrency brokerage platform Kraken, has announced an ambitious plan to bring on‑chain perpetual futures to its U.S. clientele.

The move is anchored in the company’s recent $550 million acquisition of Bitnomial, a U.S.-based derivatives exchange that already holds a suite of regulatory approvals and a robust technology stack. By merging Bitnomial’s licensed infrastructure with the cutting‑edge Hyperliquid protocol, Payward hopes to become the first fully registered U.S. exchange to offer perpetual futures that settle directly on the blockchain, eliminating the need for traditional off‑chain settlement mechanisms. ### Why On‑Chain Perpetual Futures Matter Perpetual futures are a type of derivative contract that allows traders to speculate on the price movement of an underlying asset without an expiry date.

They have become a staple in the crypto market because they enable continuous exposure and provide leverage options that can amplify gains—or losses. Traditionally, these contracts have been settled off‑chain, meaning that while the price data may be derived from on‑chain sources, the actual accounting and settlement occur within a centralized ledger maintained by the exchange. This model introduces counterparty risk, requires extensive custodial arrangements, and often subjects traders to higher fees and latency.

An on‑chain perpetual futures product, by contrast, records every trade, margin adjustment, and funding payment directly on a public blockchain. The benefits are multifold: transparency is dramatically increased because all transaction data is immutable and publicly auditable; settlement risk is reduced because the smart contract automatically enforces the rules of the market; and the overall ecosystem becomes more interoperable, allowing users to move positions across different DeFi platforms with minimal friction.

For U.S. traders, who have faced a patchwork of regulatory restrictions and limited access to high‑quality derivatives, the prospect of a compliant, on‑chain solution is especially compelling. ### The Role of Bitnomial in Payward’s Strategy Bitnomial, founded in 2019, secured a Series 1 license from the U.S.

Commodity Futures Trading Commission (CFTC) and a state‑level money transmitter license, positioning it as one of the few U.S. entities legally permitted to operate a derivatives exchange. Its technology platform is built to meet stringent compliance requirements, including real‑time reporting, anti‑money‑laundering (AML) controls, and robust risk‑management modules. By acquiring Bitnomial, Payward instantly gained access to these regulatory clearances, sidestepping the lengthy and uncertain process of obtaining them from scratch.

In addition to the licenses, Bitnomial brings a seasoned team of compliance officers, engineers, and market‑makers who understand the nuances of U.S. futures regulation.

This human capital is critical for integrating a novel protocol like Hyperliquid into a regulated environment. Payward plans to leverage Bitnomial’s existing order‑matching engine while overlaying the Hyperliquid smart‑contract layer to handle settlement. The hybrid architecture will allow the exchange to retain the speed and reliability of a traditional order book while delivering the transparency and trustlessness of blockchain settlement. ### Hyperliquid: The Technical Backbone Hyperliquid is an emerging Layer‑1‑agnostic protocol designed specifically for high‑frequency, low‑latency derivatives trading.

It employs a novel consensus mechanism that combines optimistic roll‑ups with state‑channel techniques, enabling near‑instant transaction finality without sacrificing decentralization. The protocol’s architecture supports massive throughput—reportedly exceeding 100,000 transactions per second—making it suitable for the demanding environment of perpetual futures where price updates occur multiple times per second. One of Hyperliquid’s standout features is its built‑in funding rate calculator, which automatically balances long and short positions to keep the contract price anchored to the underlying spot market.

This calculation is performed on‑chain, ensuring that all participants see the same funding rates in real time. Moreover, the protocol includes a modular risk‑engine that can enforce margin requirements, liquidation thresholds, and position limits directly within the smart contract, reducing the need for off‑chain risk checks. By integrating Hyperliquid, Payward aims to offer U.S.

traders a product that is both compliant and technologically superior to existing off‑chain futures. The on‑chain nature of the contracts also opens the door for innovative features such as composable liquidity pools, cross‑protocol arbitrage, and seamless interaction with decentralized finance (DeFi) services like lending platforms and automated market makers.

### Regulatory Compliance and Consumer Protection Operating a derivatives exchange in the United States demands adherence to a complex web of regulations, including CFTC oversight, the Securities and Exchange Commission (SEC) rules where applicable, and state‑level money transmission statutes. Payward’s strategy is to embed compliance at every layer of the system.

The Bitnomial license provides a legal foundation, while the on‑chain settlement layer is designed to be auditable by regulators in real time. Smart contracts will be subject to formal verification processes to ensure they behave as intended, and any updates to the protocol will undergo a transparent governance process that includes regulator notification. Consumer protection measures will include mandatory KYC/AML verification for all U.S. users, insurance funds to cover unexpected liquidation losses, and a clear dispute‑resolution framework.

Payward also plans to offer educational resources to help traders understand the risks associated with leveraged products, a step that aligns with the CFTC’s emphasis on market integrity and investor protection. ### Market Impact and Future Outlook If successful, Payward’s on‑chain perpetual futures could reshape the U.S. crypto derivatives landscape. Currently, most U.S.

traders rely on a limited set of regulated futures products offered by legacy exchanges, many of which are constrained by low leverage caps and higher fees. An on‑chain solution could attract a broader audience, from retail enthusiasts seeking transparent pricing to institutional players looking for efficient, auditable trade execution. The launch is expected to occur in phases.

The initial rollout will likely focus on a single underlying asset—Bitcoin—paired with a modest leverage offering to test system stability and regulatory response. Subsequent phases may introduce additional assets such as Ethereum, as well as higher leverage tiers, contingent on market demand and compliance approvals. Beyond futures, the Hyperliquid integration positions Payward to explore other on‑chain derivatives, including options, swaps, and even synthetic assets that track traditional equities or commodities.

The modular nature of the protocol means new product lines can be added without rebuilding the entire infrastructure, providing a scalable path for future innovation. In summary, Payward’s plan to leverage its Bitnomial acquisition and the Hyperliquid protocol represents a bold attempt to fuse regulatory compliance with cutting‑edge blockchain technology.

By delivering on‑chain perpetual futures to U.S. clients, the company aims to set a new standard for transparency, security, and efficiency in the crypto derivatives market, potentially ushering in a new era of decentralized yet regulated financial products.