HYPE Climbs As Hyperliquid Gets A Regulated Gateway To Enter The US Market Through Payward

If approved, Payward's Bitnomial would run and settle the markets, and a planned upgrade would let it limit trading to approved users.

• Hyperliquid edged higher on Tuesday after Kraken’s parent company said it plans to be the first CFTC-regulated firm to launch perpetual futures markets on the platform in the United States.
• Jeff Yan called Kraken "one of the most trusted and respected exchanges in crypto.”
• The plan comes a week after CME's Terry Duffy criticized Hyperliquid for having "no KYC," though the setup is still on testnet and awaits regulatory approval.

Hyperliquid's (HYPE) price edged higher on Tuesday after Kraken’s parent company, Payward, announced its plans to become the first firm regulated by the Commodity Futures Trading Commission (CFTC) to launch perpetual futures markets on the decentralized exchange (DEX) for U.S. clients.

HIP-3 lets outside operators launch their own markets on Hyperliquid. If regulators approve, Payward's Bitnomial unit would create and run the markets, and clear and settle the trades. Bitnomial is a CFTC-regulated exchange and clearing house. NinjaTrader Clearing, Payward's registered futures broker, would hold customer accounts.

That would put a regulated firm in charge of who can trade its markets. A planned Hyperliquid upgrade, called HIP-3*, would let operators like Payward limit access to approved users through an "onchain allowlist" that they manage. Hyperliquid said the feature is optional and that existing markets "remain unchanged."

Hyperliquid co-founder Jeff Yan welcomed the move, calling Kraken "one of the most trusted and respected exchanges in crypto.”

HYPE’s price rose over 0.6% over the past 24 hours. On Stocktwits, retail sentiment around HYPE remained in the ‘bearish’ zone, while chatter stayed at ‘low’ levels over the past day. 

HYPE has been up over 200% so far this year. 

Why It Matters

The plan could give U.S. traders a regulated way to access Hyperliquid's markets and address a key criticism of the platform. It also fits with the CFTC’s push to bring onchain derivatives into the U.S. 

Earlier this year, CFTC Chairman Michael Selig said that onchain technology like Hyperliquid’s would be able to “transform our markets,” and that the goal was to “create a path to bring these onchain markets into the United States.”

Last week, CME Group CEO Terry Duffy raised concerns about Hyperliquid's lack of identity checks, saying, "So we have no KYC, so we don't even know who's on the platform," Duffy said. Under Payward's proposed setup, the firm running the markets would decide who gets in.

However, it is important to note that this is not live yet. Payward's plan needs regulatory approval, and HIP-3* is running only on testnet. Hyperliquid said its specifications are "preliminary and subject to change based on feedback."

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