Hyperliquid in advanced talks with Kraken parent to bring perpetual futures to US traders

Hyperliquid Labs is in advanced talks with Payward, the parent company of crypto exchange Kraken, to bring its perpetual futures products to U.S. traders, according to a Bloomberg report published on Aug. 31.

Perpetual futures are a type of derivative contract with no expiry date, allowing traders to bet on the future price of an asset. The reported deal would route U.S. traders through Bitnomial, a regulated derivatives exchange owned by Payward, and would require regulatory approval.

Key details of the reported plan

• U.S. traders could use Bitnomial to trade perpetual futures tied to crypto tokens built on Hyperliquid’s blockchain.
• Bitnomial is a CFTC-regulated entity, designated as a contract market in 2020, and holds U.S. derivatives licenses for an exchange, clearinghouse, and brokerage.
• Payward acquired Bitnomial in April, and Kraken has previously announced plans to offer CFTC-regulated perpetual futures through Kraken Pro, listed on Bitnomial.
• Neither Payward nor Hyperliquid Labs has confirmed the deal.

Unconfirmed connection to HIP-3

Hyperliquid’s public documentation describes HIP-3 as a system for creating permissionless perpetual markets, where deployers stake 500,000 HYPE tokens to operate their own exchanges. While a testnet deployment named “Kraken HIP-3 test DEX” was observed, this does not confirm Kraken’s involvement or that HIP-3 is part of the reported talks. Anyone can launch a testnet exchange under any name.

What is confirmed

• Hyperliquid Labs and Payward are in advanced talks, as reported by Bloomberg.
• Bitnomial is the regulated venue that would facilitate the trading of perpetual futures for U.S. traders.
• Any deal would require regulatory approval.

What is still unclear

• Whether a final agreement will be reached between Hyperliquid Labs and Payward.
• If HIP-3 is involved in the potential deal.
• When or if regulators will approve the arrangement.

Sources

• The Defiant