CFTC-regulated Payward to use Hyperliquid for U.S. perpetual futures markets

Payward, the parent corporation of the cryptocurrency exchange Kraken, has communicated its intention to become the first entity regulated by the Commodities Futures Trading Commission (CFTC) to utilize HIP-3 markets. This involves Payward employing Hyperliquid [HYPE] as the underlying infrastructure to facilitate perpetual futures markets for clientele located within the United States, as Hyperliquid communicated via a post on X. Currently, this arrangement is contingent upon receiving regulatory authorization. The markets will be established, managed, and administered by Bitnomial, which serves as Payward's designated contract market (DCM) and derivatives clearing organization (DCO), which will also manage contract clearing and settlement. The planned deployment will leverage HIP-3, an extension of the HIP-3* framework that permits optional configuration of permissioned markets, with activation requiring an onchain allowlist controlled by the deployer.

In the preceding twenty-four hours, HYPE experienced a rise of 0.63%, though these short-term gains mirrored the performance of Bitcoin [BTC] and the broader altcoin market. Although HYPE bulls have benefited from a positive trend throughout much of this year, the trend observed on the daily timeframe faced substantial challenges. Over the last few days, the token's price declined to a local low of $74.5. The 100-day moving average, positioned at $75.61, along with the anchor point of the bullish structure at $75.17, came under pressure. A closing of a daily trading session below either of these levels would serve as an indication of a shift toward a bearish trend.

Despite the price correction observed across the last five weeks, the selling pressure has not been excessively strong, according to the On-Balance Volume (OBV). While trading volume has diminished in recent weeks, the volume indicator has remained near its yearly high. The absence of intense selling volume has been a mitigating factor against the otherwise downward momentum displayed by the DEX altcoin since September. Although the structure visible on the 4-hour chart is bearish, the price has currently located the $74-$76 range as a stable area of demand. For the majority of October, HYPE has traded beneath both the 50-period and 100-period moving averages on this specific timeframe. A continuation of a bearish pattern seems probable, particularly if the daily session concludes below $75.17. To reignite a bullish momentum, the price action on the H4 chart must successfully recapture the 100-period moving average, supported by consistent demand.

These developments illustrate the increasing integration of decentralized finance infrastructure with regulated financial entities, as institutional players seek to operate within established regulatory frameworks.

Why it matters

The involvement of a regulated entity like Payward signals increasing institutional interest in decentralized exchange infrastructure. Regulators are closely watching how these new regulated deployments interact with existing market structures. Investors should monitor the $75 floor as a key technical resistance level for HYPE.