Hyperliquid Tests Access Controls, and Kraken’s Parent Wants to Use Them

Introduction

Hyperliquid, a decentralized perpetual futures exchange, has begun testing a new permissioning layer—dubbed HIP‑3*—that lets market operators restrict who can trade on their platforms. The feature is currently available only on Hyperliquid’s testnet, and Payward, the parent company of Kraken, has announced its intention to be the first CFTC‑regulated entity to run markets using this on‑chain allowlist, subject to regulatory clearance.

How HIP‑3* Works

HIP‑3 extends Hyperliquid’s existing HIP‑3 framework, which already enables external developers to launch their own perpetual futures markets. The new addition introduces an on‑chain allowlist* that the market deployer—or any sub‑deployers—can manage. Key points include:

• Optional Use: Deployers can choose whether to enable the allowlist; existing markets remain unaffected.
• Granular Control: Allowlist entries are stored on‑chain, providing transparent, tamper‑evident records of who is authorized to trade.
• Future‑Ready: While the current testnet version is experimental, Hyperliquid plans to incorporate permissioned‑market settings into a forthcoming mainnet upgrade.

Payward’s Planned Deployment

Payward’s strategy hinges on integrating HIP‑3* into its own regulated infrastructure:

1. Market Creation & Clearing: Bitnomial, a CFTC‑registered exchange and clearinghouse, would launch and operate the markets, handling trade clearing and settlement.
2. Client Accounts: Accounts would be held by NinjaTrader Clearing, a Payward‑owned futures commission merchant, ensuring that only vetted, allowlisted accounts can participate.
3. Regulatory Oversight: The entire setup would remain under Payward’s regulatory umbrella, positioning it as the first U.S.‑compliant firm to run permissioned perpetual futures on Hyperliquid.

Payward highlighted that it has 6.6 million funded accounts (as of June 30) and intends to keep the “keys” and associated regulatory responsibilities in‑house.

Timeline and Outlook

• Testnet Only: The HIP‑3* allowlist is currently limited to Hyperliquid’s testnet. Specifications are still provisional and may evolve based on developer feedback.
• No Live Date: Neither Hyperliquid nor Payward has announced a launch date for mainnet deployment, and final approval from the CFTC remains a prerequisite.
• Industry Impact: If approved, this model could set a precedent for how decentralized exchanges reconcile on‑chain openness with the stringent compliance demands of U.S. regulators.

Closing Thoughts

Hyperliquid’s permissioned‑market experiment reflects a broader trend: decentralized platforms seeking modular solutions that satisfy both innovation and regulatory compliance. Payward’s ambition to be the first regulated user of HIP‑3* underscores the growing appetite among established firms to engage with on‑chain infrastructure while maintaining oversight. The coming months will reveal whether this hybrid approach can bridge the gap between DeFi’s openness and the U.S. regulatory framework, potentially shaping the future of perpetual futures trading.