Binance Launches First Regulated TradFi Perpetual Contracts Settled in Stablecoin, Starting with Gold and Silver

Largest crypto exchange bridges traditional and crypto assets, unlocking new opportunities for both crypto and TradFi participants

Binance, the largest cryptocurrency exchange by volume and users, announced the launch of TradFi Perpetual Contracts, an innovative product category enabling users to access traditional assets through USDT-settled perpetual contracts. This expansion of Binance’s derivatives offerings unlocks 24/7 access to diversified TradFi market exposure and offers new trading opportunities.

Jeff Li, VP of Product at Binance commented, “The launch of TradFi Perpetual Contracts marks a key step in bridging traditional finance and crypto innovation. By providing round-the-clock access to conventional assets with a seamless trading experience, we empower users to diversify and manage their portfolios more effectively. Backed by strong regulatory compliance and trust, this product creates new opportunities for crypto and TradFi traders on Binance.”

Binance is the first global digital assets trading platform to obtain a comprehensive suite of licenses under the Abu Dhabi Global Market (ADGM) framework, setting a new standard for digital asset regulation. TradFi Perpetual Contracts are offered by Nest Exchange Limited, a Binance entity regulated by the Financial Services Regulatory Authority (FSRA) of ADGM as a Recognized Investment Exchange.

The inaugural TradFi Perpetual Contracts, XAUUSDT and XAGUSDT, correspond to the respective precious metals gold and silver. Binance is actively working to expand the offering with more trading pairs to further bridge traditional and crypto markets.

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This launch opens TradFi instruments to existing crypto users while also welcoming traditional market participants to explore digital assets on the regulated Binance platform. It reinforces Binance’s industry-leading commitment to increasing user choices and connecting traditional finance to crypto, all while adhering to high regulatory standards.

TradFi perpetual contracts are designed for a simple and seamless trading experience, with no expiry dates and eliminating the need for contract rollovers. Traders can use them to hedge, diversify, and amplify their portfolio strategies across traditional and digital assets.

Key Benefits and Features of TradFi Perpetual Contracts

• 24/7 Traditional Market Exposure: Unlike traditional markets limited to specific trading hours, Binance’s TradFi perpetual contracts allow continuous trading, covering pre-market, post-market, and night sessions for global accessibility and flexibility.
• Simple and Straightforward: Settled in USDT, these TradFi perpetual contracts feature a familiar settlement currency and a fee structure consistent with Binance’s current range of perpetual contracts. This offers users a straightforward, cost-effective way to diversify across asset classes on a trusted platform.
• Leverage to Amplify Trading: Users can amplify their exposure using available leverage, supporting diverse risk profiles and strategies.
• Robust and Reliable Pricing with Advanced Risk Management:
  Binance maintains continuous trading even when the underlying assets have limited market hours. To ensure fair and manage off-hour risk, Binance employs sophisticated pricing and risk management mechanisms:
  • Price Index: Aggregates data from multiple vendors, updating every second during market hours. Outside these hours, it remains fixed at the last value to maintain stability.
  • Mark Price: Updates every second during trading hours, applying a smoothed futures price calculated with an Exponentially Weighted Moving Average (EWMA) during off-hours to prevent sudden price swings.
  • Deviation Constraints: Limits divergence between Mark Price and Price Index (for example, ±3% for commodity contracts like XAUUSDT) to effectively manage risk in continuous trading.

TradFi Perpetual Contracts are available on Binance’s web platform, mobile app, and via API. Users can log into their Binance account, go to Binance Futures, and find the [TradFi] tab located under the symbol search bar to explore the available TradFi Perpetual contracts.