Payward Inc. aims to offer regulated perpetual futures to U.S. traders via Hyperliquid, pending CFTC approval. , the parent company of cryptocurrency exchange Kraken, is making a significant move to bring regulated perpetual futures to U.S. traders.
The firm announced on September 16, 2026, its intention to deploy on-chain perpetual futures markets using the infrastructure of the decentralized trading protocol Hyperliquid, a plan that hinges on regulatory approval from the Commodity Futures Trading Commission (CFTC).
This initiative aims to bridge the gap between the freewheeling world of decentralized finance (DeFi) and the stringent requirements of U.S. financial regulations. If successful, Payward would become the first registered U.S. exchange and clearinghouse to own and operate a market on a public, on-chain order book, potentially unlocking a massive, previously untapped market for American investors.
The strategy behind regulated perpetual futures
The push by Payward represents a calculated effort to bring one of crypto’s most popular products within the U.S. regulatory perimeter. Perpetual futures, which saw a global trading volume exceeding $85 trillion in 2025, have largely operated in a gray area for American clients.
These products are typically offered primarily by offshore exchanges. Payward’s strategy attempts to change that narrative by combining its regulated entities with Hyperliquid’s cutting-edge technology.
At the core of this plan is Hyperliquid’s Improvement Proposal 3 (HIP-3). This framework allows third parties to build and deploy their own permissioned markets. This model of decentralized governance and development separates the protocol’s neutral infrastructure, which handles trade matching, clearing, and settlement, from the market deployer.
The deployer defines the rules and assumes responsibility for compliance. Payward intends to be the first to test this model under the CFTC’s watchful eye.
Payward’s Co-CEO, Arjun Sethi, has been clear about the company’s ambitions. “Payward intends to be the first, holding the keys and carrying the regulatory obligations,” Sethi stated, emphasizing a client-first approach. The statement signals a willingness to take on the compliance burden directly, rather than offloading risk.
The HIP-3 framework as a foundation
Hyperliquid’s HIP-3, also known as “Builder-Deployed Perpetuals,” is the technical backbone of the initiative. Launched on mainnet in October 2025, it enables developers to stake 500,000 HYPE tokens to deploy a custom decentralized exchange.
This stake was worth approximately $43 million at its peak. These deployers can set their own market specifications, oracles, and access controls while inheriting Hyperliquid’s high-performance order book and margining system.
This framework has been the fastest-growing segment on Hyperliquid, expanding the platform’s offerings beyond crypto into traditional assets like stocks. HIP-3’s share of the protocol’s open interest grew significantly in 2026, hitting a record above $4.44 billion in August.
It accounted for nearly half of its volume earlier in the summer. Payward is betting that this proven technology can be adapted for a fully regulated environment.
Payward’s regulated entities take charge
The plan designates specific roles for Payward’s CFTC-regulated subsidiaries. Bitnomial Exchange, LLC, which Payward acquired in May 2026 for $550 million, will serve as the official HIP-3 deployer.
Bitnomial will be responsible for creating, owning, and administering the market, as well as clearing and settling all contracts traded on it.
Client-facing operations will be handled by NinjaTrader Clearing, LLC, another Payward subsidiary acquired in 2025 for $1.5 billion. As a CFTC-registered Futures Commission Merchant (FCM), NinjaTrader will be responsible for onboarding clients.
They will also hold client funds and enforce compliance checks. This separation of duties is critical to meeting regulatory standards for customer protection and market integrity.
Permissioned access is the key
A crucial element of the proposal is its use of on-chain allowlists to create a permissioned trading environment. This is not open-access DeFi.
According to Jon Pham, Payward’s Head of U.S. Derivatives, a U.S. client would first open a futures account with NinjaTrader. Only accounts that have been fully onboarded and appear on both NinjaTrader’s and Bitnomial’s allowlists will be able to interact with the smart contracts on Hyperliquid.
This gatekeeping mechanism is designed to ensure that all participants meet strict Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. It allows Payward to leverage the efficiency of a public blockchain for settlement.
This maintains the tight access controls demanded by regulators. It’s a hybrid model that could set a precedent for future financial products.
Tapping into a multi-trillion dollar market
The sheer scale of the perpetual futures market explains Payward’s ambitious venture. Centralized exchanges handled an average monthly volume of $4.69 trillion in early 2026. The demand is undeniable.
Hyperliquid alone has facilitated over $5.42 trillion in total perpetuals trading volume as of September 2026. Recent 30-day volumes exceeded $200 billion.
By creating a regulated on-ramp, Payward aims to capture a portion of this activity from U.S. institutional and retail traders. These traders have been sidelined due to regulatory uncertainty.
The company has a substantial existing user base to draw from, reporting 6.6 million funded accounts as of June 30, 2026. This represents a 42% increase year-over-year. These emerging project funding models demonstrate a growing interest in novel financial instruments.
The move also comes as Hyperliquid’s native token, HYPE, has seen significant price action. After gaining over 60% since early August, the token briefly surpassed $80 following the latest news. It then settled around $79.65.
This market reaction underscores the high stakes and investor interest surrounding the convergence of DeFi and regulated markets.
Outlook and regulatory hurdles
While the plan is comprehensive, its success is entirely contingent on regulatory approval. Payward and Hyperliquid have been proactive in making their case. The Hyperliquid Policy Center submitted arguments to EU regulators that its technology can support features like leverage limits and access restrictions.
The key question is whether the CFTC will agree that this novel structure meets its standards for market oversight and investor protection.
Approval would mark a watershed moment, establishing a clear pathway for other regulated firms to utilize DeFi infrastructure. Conversely, a rejection could send a chill through the industry, pushing such innovations further offshore. The use of privacy innovations in development could also play a role in future regulatory discussions.
“A US client would open a futures account with Payward’s registered broker and trade new perpetual futures contracts on Hyperliquid, cleared through the same clearinghouse that already supports the crypto perpetual contracts Payward offers US clients today,” explained Pham.
This highlights the goal of a seamless user experience built on a complex but compliant foundation. The entire crypto industry will be watching to see if Payward can pull it off.