Hyperliquid is negotiating with Kraken's parent Payward to route crypto perpetual futures through Bitnomial, a CFTC-regulated exchange, potentially opening access for US traders and testing new regulatory pathways for decentralized derivatives.
Hyperliquid, a major decentralized exchange (DEX) for crypto perpetual futures, is in advanced negotiations with Payward, the parent company of Kraken, to make its derivatives markets accessible to US traders through Bitnomial, Payward's CFTC-regulated exchange. If completed, the arrangement would mark Hyperliquid's first entry into the US market, leveraging Bitnomial's regulatory status to address longstanding compliance barriers that have kept offshore DEXs out of reach for American users.
Regulatory Structure Under Review
According to a report from Bloomberg, the proposed structure would allow registered US users of Bitnomial to access a curated set of crypto perpetual contracts tied to Hyperliquid's decentralized markets and its underlying layer-1 blockchain. Both Payward and Hyperliquid Labs have declined to comment on the ongoing talks. Payward's acquisition of Bitnomial in early 2026 for up to $550 million gave it control of a full US derivatives stack, including exchange, clearing, and brokerage operations. Routing Hyperliquid's products through this infrastructure could provide the regulatory oversight required by US authorities, potentially setting a precedent for other offshore platforms seeking compliant access to the American market.
Regulatory Hurdles and Timeline
Payward has already presented the proposed structure to the Commodity Futures Trading Commission (CFTC), but regulatory approval remains pending. Legal experts suggest that bringing Hyperliquid's products onshore would likely require both the CFTC and the Securities and Exchange Commission (SEC) to update interpretive rules around custody and order routing. This process could take at least 10 to 12 months, even under optimistic scenarios. The regulatory push comes amid broader efforts to clarify the legal status of crypto derivatives in the US, as highlighted by President Donald Trump's recent remarks about working to bring Hyperliquid onshore in a "fully compliant and legal fashion." For context, the ongoing debate over crypto regulation in the US has also been shaped by legislative efforts such as the Digital Asset Market Clarity Act, which President Trump has urged the Senate to advance, as covered in EgonCoin's reporting on regulatory clarity efforts.
Market Impact and Industry Implications
Hyperliquid's DEX currently handles more than $4 billion in daily trading volume, according to self-reported figures, making it one of the largest offshore venues for perpetual futures. Its permissionless, non-custodial design has so far excluded US users due to regulatory risk. If the Bitnomial partnership is approved, it could serve as a template for other decentralized or offshore platforms seeking to enter the US market under existing regulatory frameworks. The Hyperliquid Policy Center has recently called for the SEC and CFTC to harmonize their treatment of perpetual contracts, arguing that clearer rules would help shift more trading volume to regulated US venues. The CFTC has already taken steps in this direction, allowing KalshiEX and Coinbase to list crypto perpetual futures in 2026 and soliciting public comment on 24/7 trading and new contract types.
At the time of publication, Hyperliquid's HYPE token was trading at $84.25, up 1.3% over the previous 24 hours, according to CoinMarketCap. The token reached an all-time high above $86 the prior week and has gained more than 85% over the past year. No financial terms for the potential Payward-Hyperliquid deal have been disclosed, and the arrangement remains subject to final regulatory approval.
Perpetual futures are a type of derivative contract that allows traders to speculate on the price of an asset without an expiry date, using leverage to amplify gains and losses. In the US, these products are tightly regulated due to their complexity and risk profile. The challenge for decentralized exchanges is to provide access to these markets while meeting strict requirements for custody, clearing, and investor protection. As US regulators weigh new frameworks for digital-asset derivatives, the outcome of the Hyperliquid-Bitnomial proposal could influence how other offshore protocols approach the American market-and how much of the global crypto derivatives trade ultimately migrates onshore.
