Binance Unveils TradFi Perpetual Futures: Bridging Traditional Finance and Crypto Innovation with 24/7 Access

Binance, the world’s leading cryptocurrency exchange by trading volume and user base, today announced the official launch of its groundbreaking “Traditional Finance (TradFi) Perpetual Futures.” This innovative offering allows users to trade traditional assets via USDT-settled perpetual contracts, significantly expanding Binance’s derivatives product line. It unlocks unprecedented 24/7 access to diverse traditional financial markets, creating a wealth of new trading opportunities for a global audience.

A Strategic Leap Connecting Worlds

Jeff Li, Binance VP of Product, emphasized the strategic importance of this development. “The introduction of TradFi Perpetual Futures marks a pivotal step in seamlessly connecting traditional finance with the innovation of the crypto space. By providing round-the-clock access to traditional assets, coupled with a fluid and secure trading experience, we empower users to diversify and manage their investment portfolios more effectively. Built on a foundation of robust regulatory compliance and trust, this product opens up new avenues for both crypto traders and traditional financial participants on the Binance platform.”

Setting a New Regulatory Benchmark

Further solidifying its commitment to compliant and secure operations, Binance has achieved a significant regulatory milestone. The exchange is now the first global digital asset trading platform to secure a full license under the stringent regulatory framework of the Abu Dhabi Global Market (ADGM), establishing a new standard for digital asset regulation worldwide. The TradFi Perpetual Futures are provided by Nest Exchange Limited, a Binance entity, which operates as a “Recognized Investment Exchange” under the regulation of the ADGM’s Financial Services Regulatory Authority (FSRA).

Initial Offerings and Future Expansion

The inaugural TradFi Perpetual Futures contracts are XAUUSDT and XAGUSDT, corresponding to the precious metals gold and silver, respectively. Binance is actively pursuing the expansion of its TradFi Perpetual Futures offerings, aiming to introduce more trading pairs and continuously deepen the integration between traditional financial instruments and the burgeoning crypto market.

This strategic launch not only provides existing cryptocurrency users with direct access to traditional financial tools but also invites traditional market participants to explore digital assets within Binance’s regulated and trusted environment. It underscores Binance’s leadership in the industry, demonstrating its dedication to broadening user choice and fostering deeper connections between financial ecosystems, all while upholding the highest standards of regulatory adherence.

Unlocking New Opportunities: Key Benefits of TradFi Perpetual Futures

Designed for a simple and seamless trading experience, TradFi Perpetual Futures eliminate expiry dates and the need for contract rollovers. This allows traders to leverage the product for sophisticated strategies, including hedging against market volatility, diversifying their holdings, and enhancing overall portfolio performance across both traditional and digital assets.

Core Features Designed for the Modern Trader:

• 24/7 Traditional Market Access: Unlike conventional markets with limited trading hours, Binance’s TradFi Perpetual Futures facilitate continuous, round-the-clock trading. This includes pre-market, after-hours, and overnight sessions, offering unparalleled flexibility and accessibility to global users.
• Simplified, Transparent Trading Experience: Settled in USDT, a familiar and widely used stablecoin, TradFi Perpetual Futures integrate seamlessly with Binance’s existing perpetual futures fee structure. This ensures an intuitive, cost-effective, and trustworthy platform for cross-asset diversification.
• Strategic Leverage Options: Users can strategically amplify their market exposure through leverage mechanisms, catering to a wide spectrum of risk tolerances and diverse trading strategies.
• Robust Pricing Mechanism & Advanced Risk Management: Binance ensures continuous trading even when underlying traditional asset markets are closed. To guarantee fair pricing and effectively mitigate risks during non-trading hours, Binance employs a sophisticated, multi-layered pricing and risk control framework:
  • Price Index: Aggregates market data from multiple providers, updating every second during trading hours. During non-trading periods, the Price Index maintains its last recorded value to ensure stability.
  • Mark Price: Updates every second during trading hours. In non-trading hours, a smoothed futures price, calculated using an Exponentially Weighted Moving Average (EWMA), is utilized to minimize the impact of sudden price fluctuations.
  • Deviation Constraints: Limits are imposed on the permissible deviation between the Mark Price and the Price Index (e.g., ±3% for the XAUUSDT commodity contract). This crucial mechanism effectively manages risk in a continuous trading environment.

How to Access TradFi Perpetual Futures on Binance

TradFi Perpetual Futures are readily available for trading via the Binance website, mobile application, and API. To begin, simply log in to your Binance account, navigate to Binance Futures, and locate the “TradFi” tab situated below the trading pair search bar. Here, you can easily browse and trade the available TradFi Perpetual Futures contracts.

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(Content provided by Binance)