The derivatives arm of the Singapore Exchange (SGX) will soon let institutions trade one of the crypto market’s most popular instruments: perpetual futures.
SGX Derivatives announced the launch of bitcoin on Monday and ether perpetual futures, scheduled to go live on November 24, with a promise to provide the structure and confidence of global derivatives markets, merged with the flexibility of crypto’s most traded instruments.
“Digital assets have found their way into institutional investors’ portfolios,” said Michael Syn, president of SGX Group. “We have taken the next logical and deliberate step – applying the same institutional discipline that underpins global markets to crypto’s most traded yields.”
Perpetual futures are futures without expiration that represent the wild west of crypto trading. The ability to hold positions forever makes them a favorite among crypto enthusiasts who want flexibility without the pressure of rollover operations ahead of looming expiration dates typically seen in traditional futures.
These instruments typically trade around the clock in mostly offshore and unregulated venues and still generate more than $187 billion in daily volume worldwide. These contracts use a financing rate mechanism involving periodic payments between buyers and sellers to keep 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 favorite. We are pleased to see SGX Derivatives bring perpetual futures onshore with traditional margining and clearing, and are pleased to support the benchmark rate for this innovative research contract,” said And Ba Indhr, product of Coin and Headysk.
iEdge CoinDesk Cryptocurrency Indices are a series of indices covering real-time benchmarks and reference rates for bitcoin and ether. The reference rates, which are published at 16:00 SGT (8:00 UTC) every day, including business holidays and weekends, tracks the performance of cryptocurrencies across liquid and reliable exchanges over a predefined time window of 15:00 to 16:00 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 centralized exchange OKX, welcomed SGX’s new offering, describing it as a timely and strategic step in providing institutional 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,” said Patrick Yeo, Head of Digital Assets, Global Financial Markets at DBS Bank.
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 holding diversified portfolios that mix crypto exposure with traditional assets.
“It is a natural step in Singapore’s market development, and this deeper reference point adds transparency and trust for institutional participants, helping to support long-term growth in the ecosystem,” Lin noted.
