Binance has launched its first regulated TradFi Perpetual Contracts, allowing users to trade traditional assets like gold and silver through USDT-settled perpetual derivatives. Offered via its ADGM-regulated entity, the product bridges traditional and crypto markets with 24/7 access, leverage, and institutional-style risk controls, expanding diversified trading opportunities for both user segments.
Binance, the world’s largest cryptocurrency exchange by trading volume and user base, has taken another decisive step toward integrating traditional financial instruments into the digital asset ecosystem with the launch of its first regulated TradFi Perpetual Contracts. Announced this week, the new product category allows users to gain exposure to traditional financial assets via USDT-settled perpetual contracts, beginning with precious metals gold and silver.
The rollout marks a milestone not only for Binance but for the broader convergence of traditional finance and crypto infrastructure—a theme that has accelerated in recent years as institutional participation in digital assets has expanded, regulatory frameworks have matured, and traders increasingly seek blended exposure across asset classes. With these new TradFi perpetual contracts, Binance aims to remove barriers that historically separated the two markets, granting crypto-native users access to familiar commodities while simultaneously introducing traditional traders to a regulated digital platform.
Jeff Li, Vice President of Product at Binance, described the launch as a strategic bridge that enables diversified portfolio construction in an environment once dominated by speculative crypto instruments. “The launch of TradFi Perpetual Contracts marks a key step in bridging traditional finance and crypto innovation. By providing round-the-clock access to conventional assets with a seamless, secure trading experience, we empower users to diversify and manage their portfolios more effectively,” Li said. He emphasised the importance of regulatory compliance in building trust between the two financial worlds, noting that the product “creates new opportunities for crypto and TradFi traders on Binance.”
Binance’s push into regulated TradFi derivatives is made possible by an increasingly robust compliance footprint, particularly in Abu Dhabi. The company is the first global digital asset trading platform to obtain a full suite of licenses under the Abu Dhabi Global Market (ADGM) regulatory framework—an accomplishment that gives it credentials and operational clarity often lacking in the international crypto space. The newly introduced perpetual contracts are offered through Nest Exchange Limited, a Binance entity recognised by the Financial Services Regulatory Authority (FSRA) of ADGM as a Recognised Investment Exchange. This designation is uncommon in the crypto trading industry, where regulatory fragmentation and jurisdictional disputes have historically slowed product innovation.
The first instruments in the series, XAUUSDT and XAGUSDT, track gold and silver, respectively—two assets that carry centuries of monetary significance and remain staples of conservative investment strategies. Binance plans to expand its offerings in the coming months to include additional traditional assets, reflecting a broader commitment to blending macroeconomic exposure with the speed and flexibility of crypto derivatives trading. While Binance did not disclose which assets may follow, industry observers expect equities, indices, and commodities to feature prominently given their liquidity and familiarity to traditional market participants.
The launch is notable for its dual-sided appeal. For crypto-native traders who cut their teeth on perpetual futures—arguably one of the defining instruments of the digital asset ecosystem—it offers access to non-crypto markets without leaving the comfort of a 24/7 exchange, nor needing to interface with multiple brokerages. For TradFi traders accustomed to fixed schedules, limited market windows, and costly rollovers, the product provides an always-on trading environment that settles in USDT and eliminates expiry dates. This combination reflects a growing expectation that financial markets should operate continuously, a demand largely shaped by the culture of cryptocurrency trading.
Binance’s TradFi perpetual contracts retain hallmark features familiar to its derivatives audience, including leverage, transparent fee structures, and user-friendly settlement. Traders can amplify positions based on their risk tolerance, hedge against macro volatility, or diversify portfolios without the overhead typically associated with accessing commodities or traditional derivatives. Settlement in USDT removes the complexity of foreign exchange considerations, while Binance’s existing liquidity infrastructure ensures sufficient depth for advanced strategies.
However, where traditional assets differ from crypto is in their limited trading hours, which introduces pricing challenges for off-session activity. To address this, Binance has built a multi-layered pricing and risk management system designed to maintain stability, prevent manipulation, and manage exposure during periods when the underlying commodity is not actively trading. The system uses a real-time Price Index that aggregates data from multiple vendors, updating every second during market hours. When markets close, the index remains fixed at the last recorded value to avoid artificial volatility.
Overlaying this, Binance employs a dynamic Mark Price calculated using an Exponentially Weighted Moving Average (EWMA) during off-hours to smooth the futures price and minimise disruptive swings. To reinforce risk controls, deviation bands constrain price divergence between the Mark Price and the underlying Index, with ±3 percent cited for commodity contracts such as gold. The result is a synthetic but orderly pricing environment that allows continuous trading without divorcing too far from reality.
For Binance, the infrastructure supporting this new product category represents more than an engineering achievement. It also serves as a subtle pitch to regulators, institutions, and market gatekeepers who have long critiqued crypto exchanges for their perceived lack of controls. By architecting traditional-style risk management practices into its derivatives products, Binance is signalling that the crypto industry is not only ready for institutional-grade oversight but capable of exporting its own market innovations back into legacy finance.
The broader implications for market structure are significant. By making traditional instruments accessible on a crypto exchange, Binance is effectively inverting the path through which institutional capital has historically flowed into digital assets. Instead of placing crypto products on institutional rails, it is placing institutional assets on crypto rails. This development could set a precedent for other exchanges that seek to integrate cross-ecosystem trading in a compliant manner.
Early adopters of the new contracts are expected to come from a combination of active crypto futures traders, global macro enthusiasts, commodities traders seeking flexible exposure, and retail participants experimenting with non-crypto markets for the first time. Binance executives expect that new users from the traditional finance sector will follow as regulatory clarity improves and platform familiarity grows.
With the lines between financial systems increasingly blurred, Binance’s launch underscores a broader shift in how markets perceive asset classes. The once cautious separation between digital and traditional markets is eroding as users demand unified access, regulators codify oversight, and platforms develop hybrid instruments. Binance’s TradFi perpetual contracts, while still in their infancy, represent a tangible manifestation of that convergence—one that is likely to expand as more participants enter the digital asset ecosystem.
The new instruments are already integrated into Binance’s web interface, mobile app, and API systems. Users can access them through Binance Futures under a newly added TradFi tab. While the addition may appear modest in the interface, the strategic direction it represents is far larger: a future where portfolio construction is borderless, markets are always open, and the distinction between crypto and traditional finance becomes increasingly irrelevant.
Discover more from Creative Brands
Subscribe to get the latest posts sent to your email.
