Hyperliquid says Kraken parent Payward to be first CFTC-regulated HIP-3 deployer

Hyperliquid said it intends to make Kraken parent Payward the first CFTC-regulated deployer on its HIP-3 markets, as the decentralized trading protocol develops permissioned-market functionality that could enable regulated U.S. perpetual futures trading.

The HIP-3 upgrade would let deployers restrict market access through onchain allowlists, potentially allowing regulated operators to use Hyperliquid's infrastructure while meeting applicable requirements. It remains unclear how the permissioning would work in practice, including whether a Payward-deployed market would incorporate built-in KYC checks.

The functionality is available on testnet, and Payward's planned deployment remains subject to regulatory approval.

Bitnomial, Payward's CFTC-regulated designated contract market and derivatives clearing organization, would act as the HIP-3 deployer, Hyperliquid said Monday in a post on X. If approved, NinjaTrader Clearing, Payward's CFTC-registered futures commission merchant, would carry client accounts.

"Hyperliquid is a neutral infrastructure layer with the goal of supporting large parts of the financial system," the protocol said, adding that deployers retain control and responsibility for their own markets.

The Block reached out to Payward for further comment.

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Bloomberg reported in August that Payward was exploring a structure to bring Hyperliquid-linked perpetual futures to U.S. traders through Bitnomial. Payward formally announced its plans on Sept. 16, saying Bitnomial would handle deployment, clearing, and settlement, subject to regulatory approval.

The Hyperliquid Policy Center also argued in an EU regulatory submission that regulated firms could use Hyperliquid to operate markets with leverage limits and onchain access restrictions while offering regulated products.