Binance launches "TradFi Perpetual Contracts," initially covering gold and silver

Binance, the world’s largest cryptocurrency exchange by trading volume and user base, announced today (8th) the official launch of “Traditional Finance (TradFi) Perpetual Contracts,” allowing users to trade traditional assets through USDT-settled perpetual contracts. This expands Binance’s derivatives product line, unlocking 24/7 access to diverse traditional financial markets and bringing new trading opportunities.

Jeff Li, Vice President of Binance Products, stated: “The launch of TradFi perpetual contracts is an important step in connecting traditional finance with crypto innovation. By providing around-the-clock access to traditional assets and offering a smooth and secure trading experience, we help users diversify and manage their investment portfolios more effectively. Supported by robust regulatory compliance and trust, this product creates new opportunities for crypto traders and traditional financial participants on the Binance platform.”

Binance has become the first global digital asset trading platform to obtain a full license under the Abu Dhabi Global Market (ADGM) regulatory framework, setting a new benchmark for digital asset regulation. The TradFi perpetual contracts are provided by Nest Exchange Limited, a Binance entity recognized as a Recognized Investment Exchange, regulated by the Financial Services Regulatory Authority (FSRA) under ADGM.

The initial TradFi perpetual contracts launched are XAUUSDT and XAGUSDT, corresponding to precious metals gold and silver, respectively. Binance is actively expanding more trading pairs to deepen the connection between traditional finance and crypto markets.

This new product allows existing cryptocurrency users to access traditional financial instruments while supporting traditional market participants to explore digital assets on a regulated Binance platform. This move further demonstrates Binance’s commitment as an industry leader to continuously expand user options and strengthen the link between traditional finance and crypto markets, all while adhering to high regulatory standards.

Designed with simplicity and a seamless trading experience at its core, TradFi perpetual contracts have no expiration date and do not require contract rollovers. Traders can use this product for hedging, diversification, and enhancing their portfolio strategies across traditional and digital assets.

Main Advantages and Features of TradFi Perpetual Contracts

• 24/7 Traditional Market Exposure: Unlike traditional markets that operate only during specific hours, Binance’s TradFi perpetual contracts support continuous trading around the clock, including pre-market, after-hours, and night sessions, providing greater flexibility and accessibility for global users.

• Simple, Transparent Trading Experience: Settled in USDT, a familiar currency for users, and utilizing Binance’s existing perpetual contract fee structure, enabling users to achieve diversified asset allocation across asset classes in a reliable platform with an intuitive and cost-effective approach.

• Leverage to Amplify Trading Benefits: Users can leverage their market exposure to magnify potential gains, supporting diverse risk tolerance levels and trading strategies.

• Robust and Reliable Pricing Mechanisms with Advanced Risk Management: Even when trading hours for the underlying assets are limited, Binance maintains continuous trading. To ensure fair pricing and effectively manage risks during non-trading hours, Binance employs multi-layered pricing and risk control mechanisms:

  • Price Index: Aggregates data from multiple data providers, updating every second during trading hours; during non-trading hours, the index maintains the last recorded value to ensure price stability.
  • Mark Price: Updates every second during trading hours; during non-trading hours, it uses a smoothed futures price calculated via an Exponentially Weighted Moving Average (EWMA) to reduce the risk of sharp price fluctuations.
  • Deviation Constraints: Limits the deviation between the mark price and the price index (e.g., for XAUUSDT, the deviation range is ±3%) to effectively control risk in continuous trading environments.

TradFi Perpetual Contracts can be traded via Binance’s web platform, mobile app, and API. Users simply log into their Binance account, go to Binance Derivatives, and find the “TradFi” tab below the trading pair search bar to browse and trade available TradFi perpetual contracts.