Singapore’s main derivatives exchange, SGX Derivatives, will introduce two new financial products late this month, citing growing professional interest in the sector. This strategic launch seeks to satisfy current institutional cryptocurrency demand, facilitating a safe and regulated convergence between traditional finance ecosystems and digital native assets, according to the entity’s official announcement.
On the other hand, the new Bitcoin and Ether perpetual futures contracts will be available for trading starting November 24. These instruments will allow accredited and expert investors to manage their exposure to the assets’ prices underlying without an expiration date, operating under the strict supervision of the Monetary Authority of Singapore (MAS) to ensure regulatory compliance.
Does this move represent the definitive integration of digital assets into traditional finance?
Likewise, it is important to highlight that this marks the second launch of crypto-based futures in the region, following the path set by EDXM International in July. In this way, Singapore continues its cautious but firm adoption, expanding its digital asset framework while maintaining a rigorous regulatory stance, where companies violating current regulations face severe fines and possible prison terms.
However, the structure of these perpetual derivatives offers a significant advantage by eliminating the need for physical token custody. Therefore, these contracts are expected to become a significant revenue stream for the exchange, given that perpetual futures are among the most actively traded derivatives globally in the cryptocurrencies environment.
To conclude, Singapore ranks 15th on the global adoption index, demonstrating that regulatory clarity attracts capital. The introduction of these products reinforces the country’s financial infrastructure, offering large investors sophisticated tools to navigate market volatility without the operational risks of direct holding.
