Kraken parent Payward to deploy CFTC-regulated markets on Hyperliquid
DeFi & Yields ·
Payward plans to become the first regulator-approved deployer of Hyperliquid's HIP-3 framework, bringing permissioned perpetual futures to U.S. clients pending approval.
Hyperliquid announced that Payward, the parent company of Kraken, intends to become the first CFTC-regulated deployer of its HIP-3 infrastructure, a move that would extend the protocol's perpetual futures markets to U.S. clients under regulatory oversight, according to wublockchain.xyz. The plan, which remains subject to regulatory approval, would see Payward's CFTC-regulated designated contract market and derivatives clearing organization, Bitnomial, act as the deployer responsible for managing the markets and clearing and settling contracts.
Client accounts in this arrangement would be carried by NinjaTrader Clearing, a CFTC-registered futures commission merchant also under Payward, filling the role of custodying customer positions within the regulated structure. The setup effectively layers traditional U.S. derivatives market infrastructure — a DCM, a DCO, and an FCM — on top of Hyperliquid's onchain perpetuals protocol, a hybrid approach detailed in theblock.co coverage of the announcement.
To support this, Hyperliquid is introducing a new version of its HIP-3 framework, referred to as HIP-3*, which adds optional onchain allowlists enabling permissioned markets. Hyperliquid has confirmed that existing HIP-3 markets will be unaffected by the change, and the feature is positioned as additive rather than disruptive to current deployments, per the protocol's own announcement shared via x.com.
The initial version of HIP-3* is currently available on testnet only, with Hyperliquid cautioning that specifications are subject to change before any broader rollout. Background on how HIP-3 functions as a deployer framework for building permissioned and specialized markets on Hyperliquid is laid out in leviathan.news's explainer on the architecture.
Coverage of the planned deployment has appeared across at least eight distinct sources, reflecting notable interest in a regulated entity bringing CFTC oversight to Hyperliquid-based perpetuals. What remains unresolved is the timeline and outcome of the regulatory approval process, as well as the final technical specifications of HIP-3* once it moves beyond testnet.