Binance Unveils Precious Metal Perpetual Futures Amid Price Surge

Gold and silver have been in a rally since last year, and crypto giants are making room for the growing market. Binance, the biggest crypto exchange in the world, has launched new perpetual contracts to accommodate these precious metals.

In an official announcement on 8 January, the exchange said its new platform will bring regulated traditional finance (TradFi) perpetual contracts settled in stablecoin. The goal is to make these metals available to more investors within the crypto space as well as attract those outside to participate in the crypto space. 

Binance Expands TradFi Access

The Gold and silver rally has been phenomenal since last year. Gold hit $4,000 for the first time since its existence, and silver has also hit a new all-time high. Binance, known for high liquidity is leveraging this persisting rally to usher in more users into the TradFi space. 

With the launch, Binance users can now trade gold (XAUUSDT), and silver (XAGUSDT) 24/7 on Binance Futures through USDT-settled perpetual contracts in a simple and seamless trading experience with no expiry dates, thus eliminating the need for contract rollovers. Jeff Li, VP of Product at Binance said:

“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 trading experience, we empower users to diversify and manage their portfolios more effectively. Backed by strong regulatory compliance and trust, this product creates new opportunities for crypto and TradFi traders on Binance.”

The platform has in the past striven to bridge the gap between crypto and traditional finance. This has been a challenging journey for several reasons, including regulatory bottlenecks. However with more friendly and clear regulations, there is more freedom and this perpetual contract launch is a major step towards uniting TradFi and crypto. 

Binance Aligns with Regulations

Binance is a regulated crypto trading platform in many jurisdictions. Although it has faced several allegations of manipulation and violations, the platform seems determined to align with local regulations where it operates.

The new perpetual contracts are fully regulated in all jurisdictions where such is permitted, and is expected to bring more mainstream investors into crypto, particularly in the U.S. where crypto has become more accepted.