Payward aims to be first CFTC-regulated deployer on HIP-3 markets

Payward, the parent company of Kraken, has announced its intention to become the first CFTC-regulated deployer on HIP-3 markets. The company will utilize Hyperliquid as the infrastructure layer to launch perpetual futures markets for clients in the US. Pending regulatory approval, Bitnomial, Payward’s CFTC-regulated DCM and DCO, is set to serve as the HIP-3 deployer, responsible for creating, owning, and managing the markets, as well as clearing and settling the contracts. If approved, NinjaTrader Clearing, Payward’s CFTC-registered FCM, will handle client accounts.

HIP-3 will support optional deployer configurations for permissioned markets in a future network upgrade, collectively referred to as HIP-3*. This activation involves an on-chain allowlist managed by the deployer or its sub-deployers. The functionality is additive to HIP-3, remaining optional for deployers, while existing markets will remain unchanged. The initial release is available on testnet, with specifications that are preliminary and subject to change based on user feedback.

Hyperliquid serves as a neutral infrastructure layer aimed at supporting significant portions of the financial system. HIP-3* provides deployers with enhanced capabilities to operate in accordance with applicable requirements. Similar to HIP-3, HIP-3* deployers are independent operators utilizing Hyperliquid as their on-chain infrastructure layer while maintaining control and responsibility over their deployments.