Singapore Exchange’s (SGX) derivatives arm will soon let institutions trade one of the crypto market’s most popular instruments: perpetual futures.
The SGX Derivatives announced on Monday the launch of bitcoin and ether perpetual futures, scheduled to go live on Nov. 24, with a promise to deliver the structure and trust of global derivatives markets, fused with the flexibility of the crypto’s most traded instruments.
“Digital assets have made their way into institutional investors’ portfolios,” said Michael Syn, president of SGX Group. “We’ve taken the next logical and deliberate step — applying the same institutional discipline that underpins global markets to crypto’s most traded payoff.”
Perpetual futures are futures with no expiry, representing the wild west of crypto trading. The ability to hold positions perpetually makes them a favourite among crypto enthusiasts who want flexibility without the pressure of rollover operations ahead of looming expiry deadlines typically seen in traditional futures.
These instruments typically trade around the clock on mostly offshore and unregulated venues, still generating more than $187 billion in daily volumes worldwide. These contracts utilize a funding rate mechanism, involving periodic payments between buyers and sellers, to maintain contract prices close to the actual market price of the underlying asset.
SGX’s perpetual futures reference the iEdge CoinDesk Crypto Indices, ensuring alignment with benchmarks widely used for institutional price discovery.
“More than two-thirds of all crypto trading is in derivatives, and perpetual futures offer unique features and benefits that have made them a favourite. We are excited to see SGX Derivatives bring perpetual futures onshore with traditional margining and clearing, and are delighted to support the benchmark rate for this innovative contract,” Andy Baehr, head of product and research at CoinDesk Indices, said.
The iEdge CoinDesk Cryptocurrency Indices are a suite of indices covering real-time benchmarks and reference rates for bitcoin and ether. The reference rates, published 4 p.m SGT (8 a.m. UTC) every day, including business holidays and weekend, track the performance of cryptocurrencies across liquid and reliable exchanges over a pre-defined time window of 3 p.m. to 4 p.m. SGT.
The real-time indices are published every second, 24 hours a day, including business holidays and weekends.
Industry players welcome the launch
Key industry players, including DBS Bank and centralised exchange OKX, welcomed SGX’s new offering, describing it as a timely and strategic step in providing institutions with access to crypto markets.
“We are committed to sharing our expertise and insights as a pioneer in this space to foster a robust and responsible digital asset ecosystem in Singapore,” Patrick Yeo, head of digital assets, global financial markets at DBS Bank, said.
Yeo explained that perpetuals will help institutional traders take exposure to cryptocurrencies without owning them, facilitating greater precision and capital efficiency in managing portfolios compared to spot trading, where traders buy or sell the actual asset immediately.
Gracie Lin, CEO of OKX Singapore, said the growing demand for regionally anchored benchmarks reflects a broader institutional trend of having diversified portfolios that blend crypto exposure with traditional assets.
“It is a natural step in Singapore’s market evolution, and this deeper reference point adds transparency and confidence for institutional participants, helping to support long-term growth of the ecosystem,” Lin noted.
