SGX Files to Offer Crypto Perpetuals to US Institutions

Singapore Exchange filed with the CFTC to offer crypto perpetual futures to US institutions. This makes SGX the first major traditional exchange to pursue this specific product type for American clients. The filing allows the exchange to serve hedge funds and asset managers if no objection is raised within ten days. SGX launched Bitcoin and Ether perpetuals in late 2024. The new move targets a deeper pool of institutional traders.

Perpetual futures allow leveraged bets without expiry dates. These contracts remain a core part of crypto trading. Traditional exchanges are entering this space as regulators become more receptive. The derivatives market generates hundreds of billions in monthly volume. SGX changes the standard crypto model for its US offering.

Structural Differences in Trading Hours

SGX contracts trade for 22.5 hours a day. Trading occurs five days a week. Members must post 35% margin. Fiat currency is required for collateral. The exchange does not use automatic deleveraging. These rules differ from crypto-native platforms. SGX argues this suits institutional clients. These investors do not trade on weekends. KC Lam, head of crypto derivatives at SGX, stated the target profile is accredited and expert investors. This group prefers regulated, structured access.

Liquidity Gap Between Venues

Liquidity remains concentrated on crypto-native venues. Hyperliquid handles 80 to 100 billion dollars monthly. This volume covers Bitcoin and Ether perps. SGX has recorded about 6 billion dollars since launch. The gap is significant. US institutional access may close this distance. Lam believes the US market is essential. He cited high institutional participation in crypto futures and ETFs. The US offers a natural expansion path for SGX.

Regulatory Shifts Open New Doors

US investors previously used offshore venues for perps. The CFTC approved the first domestic Bitcoin perpetual in May. This contract ran on Kalshi. CFTC chairman Michael Selig called it a step toward US regulation. Trump mentioned working to bring Hyperliquid to the US. He did not offer a timeline. SGX sees this as a ripe moment. Lam expects volume growth from the new access. He noted that liquidity begets liquidity. More participants will likely join the market.