Hyperliquid Labs and Payward, the parent company of Kraken exchange, are in advanced negotiations to launch crypto perpetual futures trading for U.S. participants. The arrangement would route American trading activity through Bitnomial, a CFTC-regulated Payward subsidiary that operates as an exchange, clearinghouse, and brokerage.
A preliminary framework proposal has been submitted to the Commodity Futures Trading Commission, though final regulatory authorization has not yet been granted. According to Ashley Ebersole, former senior legal counsel at the SEC, the approval process could take 10 to 12 months under optimal circumstances, potentially requiring coordination between both the SEC and CFTC.
Current Market Structure
Hyperliquid currently restricts U.S. user access to its decentralized exchange platform, which processes more than $4 billion in daily transaction volume. Under the proposed partnership, verified American traders would gain access to a selection of crypto perpetual futures connected to Hyperliquid's liquidity pools through Bitnomial's regulated infrastructure, while remaining separated from Hyperliquid's unregulated decentralized platform.
Crypto perpetual futures are derivative instruments that track underlying asset prices without expiration dates. These products have seen widespread adoption on international and decentralized exchanges but face strict regulatory restrictions in the United States.
Strategic Context
Payward acquired Bitnomial earlier this year in a transaction valued at up to $550 million, gaining comprehensive CFTC-approved derivatives infrastructure. The partnership's structure is designed to maintain all U.S. trading activity within regulated parameters, with Bitnomial handling compliance obligations.
Regulatory authorities have expressed concerns about decentralized trading venues, citing potential vulnerabilities including market manipulation, anti-money laundering compliance, and sanctions enforcement.
Regulatory Environment
U.S. regulators have begun creating pathways for crypto perpetual futures. The CFTC approved KalshiEX and Coinbase to offer these instruments in May, and subsequently requested public feedback on additional perpetual contract offerings.
President Donald Trump referenced Hyperliquid during a press gathering with technology executives, noting that CFTC Chairman Michael Selig was working to integrate the platform into the U.S. market through compliant channels. Kraken declined to comment on the ongoing negotiations.
