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Binance, the largest cryptocurrency exchange by volume and users, has announced the launch of TradFi Perpetual Contracts, a product category enabling users to access traditional assets through USDT-settled perpetual contracts.
The new derivatives offering provides 24/7 access to diversified traditional finance market exposure and trading opportunities, marking a development in the convergence of conventional and digital asset markets.
Jeff Li, VP of Product at Binance
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 licences under the Abu Dhabi Global Market (ADGM) framework. TradFi Perpetual Contracts are offered by Nest Exchange Limited, a Binance entity regulated by the Financial Services Regulatory Authority (FSRA) of ADGM as a Recognised Investment Exchange.
The inaugural TradFi Perpetual Contracts, XAUUSDT and XAGUSDT, correspond to gold and silver respectively. Binance is working to expand the offering with additional trading pairs to further bridge traditional and crypto markets.
The launch opens traditional finance instruments to existing crypto users whilst welcoming traditional market participants to explore digital assets on the regulated Binance platform.
TradFi perpetual contracts feature no expiry dates and eliminate the need for contract rollovers. Traders can use them to hedge, diversify, and amplify their portfolio strategies across traditional and digital assets.
The contracts offer 24/7 traditional market exposure, unlike conventional markets limited to specific trading hours. Settled in USDT, the contracts feature a fee structure consistent with Binance's current range of perpetual contracts.
Users can amplify their exposure using available leverage, supporting diverse risk profiles and strategies.
Binance maintains continuous trading even when underlying assets have limited market hours. To ensure fair pricing and manage off-hour risk, Binance employs pricing and risk management mechanisms including a Price Index that aggregates data from multiple vendors, updating every second during market hours and remaining fixed at the last value outside these hours.
The 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 limit divergence between Mark Price and Price Index (±3% for commodity contracts like XAUUSDT) to manage risk in continuous trading.
TradFi Perpetual Contracts are available on Binance's web platform, mobile app, and via API. Users can access the contracts through Binance Futures under the TradFi tab located under the symbol search bar.
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