Binance Shatters Barriers: Launches TradFi Perpetual Futures for Gold & Silver
Binance just threw a grenade into traditional finance's sandbox. The crypto behemoth launched perpetual futures markets for TradFi assets, kicking off with the timeless duo: gold and silver.
Bridging Worlds or Building a New One?
This isn't just another product launch—it's a direct bridge between the volatility of crypto and the perceived stability of precious metals. Suddenly, traders can leverage positions on gold's price movements using the same mechanics they deploy for Bitcoin, all within a single, crypto-native ecosystem. It bypasses decades of legacy infrastructure in one fell swoop.
The Mechanics of Convergence
The move leverages Binance's deep liquidity and 24/7 trading engine, applying it to assets that usually sleep when Asia wakes. It brings crypto's signature features—like perpetual contracts with funding rates—to markets governed by different fundamental drivers. Think of it as high-frequency finance meets ancient stores of value.
A Cynical Nod to Tradition
Let's be real: this also lets traders bet against 'safe havens' with the same ease as shorting a meme coin—because nothing says financial innovation like leveraging your grandmother's preferred hedge against collapse. It's a brilliant, if slightly ironic, absorption of TradFi's sacred cows into the crypto casino.
Binance isn't just expanding its menu; it's inviting traditional markets to play by its rules. The wall between crypto and everything else just got a lot thinner. Gold bugs, meet your new, infinitely more efficient, and dangerously leveraged reality.
Binance competes with tokenized stocks
The shift to TradFi markets starts competing with the drive for tokenized shares. Recently, tokenized shares reached peak value locked, although their growth has been relatively conservative by the standards of crypto markets.
Kraken has emerged as the first mover in offering XStocks, while Bitget expanded other types of tokenized markets.
The main obstacle to trading tokenized shares is regulation and the exact ownership of shares and tokens. Perpetual futures and prediction markets on stock and commodity prices can launch more easily, with fewer restrictions. Binance has chosen this path, opening the door to the relatively easy addition of TradFi price contracts.
Binance will use its model for perpetual futures, settled against USDT. The perpetual contracts have no expiration date and are open 24/7. The TradFi market will be added under the Binance Futures brand.
The Binance market will reflect the opening hours of traditional markets when supplying price information. Outside trading hours on global exchanges, the market will allow limited price deviation.
Binance offers regulated futures trading
In addition to using its USDT trading infrastructure, Binance TradFi futures offers a fully regulated platform. The exchange launched the trading under the Abu Dhabi Global Market framework.
The Binance TradFi Futures are traded on the Nest Exchange Limited and cleared by the regulated clearing house Nest Clearing and Custody Limited. The futures market will calculate and stabilize prices based on the 25/5 schedule for precious metals, with no price discovery on weekends.
As the TradFi futures use USDT for settlement, the products may not be available for EU-based traders.
In the initial trading hours, gold had more advanced activity, with $24M in daily volumes and $5.7M in open interest. The futures market still lags behind XAUt tokenized gold trading, which achieved $291M in daily trades. XAUT also traded at a slight premium of $4,425 per token, representing an ounce of gold.
The silver market is even smaller, with under $250K in daily volumes, as silver is down from its recent highs to $75 per ounce. With new types of assets, Binance may also tap international demand for US stocks, offering a regulated and more secure market for exposure to some of the most active assets for the past year.
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