Binance, the world's largest cryptocurrency exchange by trading volume and user count, officially announced today (8) the launch of "TradFi Perpetual Contracts," allowing users to trade traditional assets via USDT-settled perpetual contracts, further expanding Binance's derivatives product line. This enables users to gain 24/7 exposure to diverse traditional financial markets and unlock new trading opportunities.
Jeff Li, Binance's Deputy Product Head, said: 'The launch of TradFi perpetual contracts marks a significant step in connecting traditional finance with cryptocurrency innovation. By offering round-the-clock access to traditional assets and combining it with a seamless and secure trading experience, we help users more effectively diversify and manage their investment portfolios. Supported by robust regulatory compliance and trust, this product creates new opportunities for both cryptocurrency traders and traditional finance participants on the Binance platform.'
Binance has become the first global digital asset exchange to obtain a full license under the regulatory framework of the Abu Dhabi Global Market (ADGM), setting a new benchmark for digital asset regulation. TradFi perpetual contracts are offered by Nest Exchange Limited, a Binance subsidiary, which operates as a 'Recognized Investment Exchange' and is regulated by the Financial Services Regulatory Authority (FSRA) under ADGM.
The initial TradFi perpetual contracts launched—XAUUSDT and XAGUSDT—correspond to the precious metals gold and silver, respectively. Binance is actively expanding into more trading pairs, continuously deepening the connection between traditional finance and the crypto market.
This new product launch enables existing cryptocurrency users to access traditional financial instruments, while also supporting traditional market participants in exploring digital assets on the regulated Binance platform. This move further highlights Binance's role as an industry leader, committed to expanding user choices and deepening the connection between traditional finance and the crypto market, all while strictly adhering to high regulatory standards.
TradFi perpetual contracts are designed around a simple and seamless trading experience—contracts have no expiration date and eliminate the need for contract rollover. Traders can use this product to hedge, diversify investments, and strengthen portfolio strategies between traditional and digital assets.
Key Advantages and Features of TradFi Perpetual Contracts
24/7 Traditional Market Exposure: Unlike traditional markets that operate only during specific trading hours, Binance's TradFi perpetual contracts support continuous trading around the clock, covering pre-market, after-hours, and overnight sessions, offering greater flexibility and accessibility for users worldwide.
Simple and transparent trading experience: TradFi perpetual contracts settle in USDT, using a familiar settlement currency, and maintain Binance's consistent fee structure for perpetual contracts, enabling users to achieve diversified asset allocation in an intuitive and cost-effective manner on a trusted platform.
Leverage to amplify trading returns: Users can leverage the mechanism to increase market exposure, supporting a wide range of risk tolerances and trading strategy needs.
Robust and reliable pricing mechanisms and advanced risk management: Even when the underlying asset market is closed, Binance can still maintain continuous trading. To ensure fair pricing and effectively manage risks during non-trading periods, Binance employs multi-layered pricing and risk control mechanisms:
Price Index: Aggregates market data from multiple data providers, updated every second during trading hours; during non-trading periods, the price index remains at the last recorded value to ensure price stability.
Mark Price: Updated every second during trading hours; during non-trading periods, it uses a smoothed futures price calculated via exponentially weighted moving average (EWMA) to reduce the risk of extreme price fluctuations.
Deviation Constraints: Limits the deviation between the mark price and the price index (e.g., for commodity contracts like XAUUSDT, the deviation range is ±3%) to effectively manage risk in a continuous trading environment.
TradFi perpetual contracts can be traded via Binance's web platform, mobile app, and API. Users simply need to log in to their Binance account, navigate to Binance Contracts, and locate the 'TradFi' tab below the trading pair search bar to browse and trade available TradFi perpetual contracts.
(Content provided by Binance)
"Binance Launches 'TradFi Perpetual Contracts' with Initial Focus on Gold and Silver" was first published on (BlockC).