Singapore Exchange (SGX) is expanding its crypto business into the US by planning to offer crypto perpetual futures to American institutions. The move comes as US regulators become more open to crypto derivatives, while President Donald Trump continues to support policies that promote the digital asset industry.
SGX Targets US Institutions
SGX has asked the US CFTC for permission to offer its Bitcoin and Ethereum perpetual futures to US investors. Notably, SGX launched its Bitcoin and Ethereum perpetual futures in November. It now wants to attract more US hedge funds, asset managers, and trading firms.
Perpetual futures, also called “perps,” are futures contracts with no expiration date. They let traders bet on whether the price of an asset will rise or fall, often using borrowed money, and keep their positions open for as long as they want.
Perps have mainly been traded on crypto exchanges, but traditional financial firms are now trying to enter the market too.
SGX Head of Crypto Derivatives KC Lam said the exchange is mainly targeting institutions and professional investors who usually do not trade on weekends. “We are going after institutions, accredited investors, expert investors,” Lam said.
Trump’s Crypto Push Adds to the Shift
SGX’s expansion comes as US regulators become more open to crypto perpetual futures. In May, the CFTC approved the first true Bitcoin perpetual contract on Kalshi. This created a path for the product to operate legally under US rules.
CFTC Chairman Michael Selig said the move will bring one of crypto’s most heavily traded markets under US regulation. Crypto platforms have also helped make perpetual futures more popular. For example, Hyperliquid handles about $80 billion to $100 billion in Bitcoin and Ethereum perpetual futures each month.
President Trump has also shown interest in the sector. In August, he said Selig was working to bring Hyperliquid into the US legally and in line with regulations, although he did not give a timeline.
TradFi Takes on Binance and Bybit
For years, crypto exchanges like Binance and Bybit have dominated the global perpetual futures market, offering 24/7 trading and high leverage.
Meanwhile, SGX is taking a more traditional approach. Its contracts trade 22.5 hours a day, five days a week. Traders must provide 35% margin and use fiat currency as collateral. SGX also does not use the automatic deleveraging systems found on some crypto exchanges.
This setup is designed more for institutional investors and focuses on managing risk rather than serving retail traders.
SGX also offers more than crypto. Institutions can trade crypto derivatives alongside products linked to stocks, interest rates, currencies and commodities.
Institutional Liquidity to Change the Market
SGX has recorded about $6 billion in perpetual futures trading since launching the products. By comparison, Hyperliquid handles an estimated $80 billion to $100 billion in Bitcoin and Ethereum perpetuals each month.
In August, SGX recorded 29,655 Bitcoin perpetual contracts and 6,758 Ethereum perpetual contracts. In the first eight months of the year, total trading reached 353,825 contracts.
In other words, allowing US institutions to trade these products could bring more liquidity to the market, leading to tighter spreads and deeper markets, making it easier for large investors to trade.
Other Exchanges to Follow
Meanwhile, SGX is not the only exchange targeting this market. Coinbase has also expanded into regulated crypto derivatives. In May, it said its US-regulated futures business could give institutional clients access to global crypto perpetuals and options. Coinbase has also filed with the SEC to offer equity-based perpetuals.
Essentially, traditional exchanges are increasingly competing to offer perpetual contracts for institutional crypto trading, bringing one of crypto’s most popular products further into mainstream finance.
Related: Coinbase Has a Plan B If the CLARITY Act Fails: What It Means for Crypto Traders and New Products
