Binance launches the first batch of regulated traditional finance (TradFi) perpetual contracts settled with stablecoins, initially covering gold and silver.

Global Cryptocurrency Exchange Binance Announces Launch of a Regulated Innovative Product — Traditional Finance (TradFi) Perpetual Contracts.
(Background: He Yicheng Becomes Binance Co-CEO! Balancing Binance Compliance and Growth)
(Additional context: He Yicheng: Every era has its own “eggs,” Binance Alpha’s Supermarket Promotion School)

This is a press release written and provided by Binance and does not represent the position of Dongqu.

The world’s largest cryptocurrency exchange connects traditional finance and digital assets, opening new opportunities for both crypto market participants and traditional financial players.

Today, Binance, the largest crypto exchange by trading volume and user base, officially announced the launch of traditional finance (TradFi) perpetual contracts. This innovative product category allows users to trade traditional assets through USDT-settled perpetual contracts, further expanding 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 more effectively diversify and manage their investment portfolios. Supported by robust regulatory compliance and trust, this product creates new opportunities for crypto traders and traditional finance participants on the Binance platform.”

Binance becomes 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 Binance’s subsidiary Nest Exchange Limited, which is recognized as a (Recognized Investment Exchange) and regulated by the Financial Services Regulatory Authority (FSRA) under ADGM.

The first batch of TradFi perpetual contracts, XAUUSDT and XAGUSDT, correspond to precious metals gold and silver respectively. Binance is actively expanding more trading pairs and continuously deepening the connection between traditional finance and the crypto market.

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

The TradFi perpetual contracts are designed with a simple, smooth trading experience in mind. The contracts have no expiration date and do not require rollover. Traders can use this product to hedge, diversify investments between traditional and digital assets, and strengthen portfolio strategies.

(Main advantages and features of TradFi perpetual contracts

• 24/7 Access to Traditional Markets: 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, familiar to users, and adopting the same fee structure as existing Binance perpetual contracts, enabling users to achieve diversified asset allocation across categories on a trusted platform in an intuitive and cost-effective manner.

• Leverage to Amplify Trading Benefits: Users can leverage their market exposure through margin mechanisms, supporting diverse risk tolerance and trading strategies.

• Robust and Reliable Pricing Mechanism with Advanced Risk Management: Even when trading in the underlying asset market is limited, Binance can maintain 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 )Price Index###: Aggregates data from multiple data providers, updated every second during trading hours; during non-trading hours, the price index remains at the last value to ensure price stability.
  • Mark Price (Mark Price): Updated every second during trading hours; during non-trading hours, calculated using an exponentially weighted moving average (EWMA) of the smoothed futures price to reduce the risk of sharp price fluctuations.
  • Deviation Constraints (Deviation Constraints): Limits the deviation between the mark price and the price index (for example, the deviation range for commodity contracts like XAUUSDT is ±3%), effectively controlling risk in continuous trading environments.

TradFi perpetual contracts can be traded via Binance’s web platform, 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.

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