Binance Rolls Out USDT-Settled Gold and Silver Contracts

Binance has launched a new category of products, TradFi Perpetual Contracts, which allow traders to access traditional assets like gold and silver through USDT-settled perpetual futures. The contracts, offered through a regulated Binance entity in Abu Dhabi, represent a step toward bridging traditional finance and digital assets. These contracts provide 24/7 trading access to conventional assets, using the same perpetual futures structure as crypto markets.

The new products include XAUUSDT for gold and XAGUSDT for silver, both of which are settled in the USDT stablecoin. Binance stated that more trading pairs are planned for future expansion, with the goal of connecting traditional and crypto markets more seamlessly. The contracts are available through Nest Exchange Limited, a Binance subsidiary regulated by the Abu Dhabi Global Market.

Binance emphasized the significance of this move as the first global digital asset platform to obtain a comprehensive suite of licenses under the ADGM framework. This regulatory compliance supports the launch of the products on a legitimate and transparent basis. The perpetual contracts have no expiry dates, enabling traders to hold positions indefinitely without the need for rollovers, a feature common in traditional futures markets.

Why Did This Happen?

The launch of these products reflects Binance’s broader strategy to expand beyond purely digital assets. The company has been preparing for this move through API updates in December, which hinted at potential expansions into stock-linked perpetual contracts. By offering perpetual futures tied to traditional assets, Binance aims to meet growing demand for 24/7 access to commodities and other non-digital financial instruments.

Jeff Li, Binance’s vice president of product, stated that the launch is a key step in connecting traditional finance and crypto innovation. He noted that the perpetual contracts provide a familiar trading format for users who want to diversify their portfolios and gain continuous exposure to traditional markets.

How Did Markets React?

Gold and silver have seen strong performance in recent months, driven by geopolitical tensions and a weaker U.S. dollar. Both metals reached all-time highs in December 2025, outperforming Bitcoin, which saw a decline of about 5% during the same period. This growing interest in precious metals aligns with Binance’s timing for the launch of these contracts.

The move has also been supported by increased demand for tokenized versions of traditional assets. A Dune dashboard showed that onchain representations of stocks and commodities exceeded $1 billion in assets by late 2025, reflecting a 50-fold increase over a year. This trend indicates growing interest in blending digital and traditional financial ecosystems.

What Are Analysts Watching Next?

Analysts are observing how this expansion might impact Binance’s user base and broader market dynamics. CryptoQuant’s Ki Young Ju noted that capital flows into Bitcoin have slowed compared to previous cycles, with interest shifting toward equities and commodities. This suggests a broader rotation of capital across asset classes rather than a focus on crypto alone.

The launch of these contracts also raises questions about how other major exchanges might respond. Other platforms, including Coinbase, MEXC, and Bybit, already offer gold and silver perpetual contracts. Binance’s entry into this space with USDT settlement and ADGM regulation could set a new standard for the integration of traditional and digital asset trading.

Broader Implications for Traditional and Crypto Markets

Binance’s move reflects a strategic pivot as major crypto exchanges seek growth beyond digital assets. This trend is driven by evolving investor preferences and the need to diversify offerings in a competitive landscape. By offering perpetual contracts for traditional assets, Binance provides a regulated, stablecoin-settled alternative for traders looking to access commodities without the complexities of traditional market infrastructure.

The introduction of these contracts also supports Binance’s efforts to increase its user base by attracting traditional market participants. This could expand the exchange’s reach beyond its existing crypto-native audience, positioning it as a more comprehensive financial platform.

Next Steps and Future Plans

Binance has not yet disclosed whether these contracts will be available to users in the European Economic Area or the United Kingdom. The company has also not responded to inquiries about jurisdictional specifics. However, it has confirmed plans to introduce additional trading pairs in the future, further expanding its offering of traditional asset-linked contracts.

As the crypto and traditional finance markets continue to evolve, Binance’s launch of TradFi Perpetual Contracts represents a significant milestone in the convergence of digital and traditional financial systems. The success of this initiative could influence the development of similar products on other platforms and shape the future of derivatives trading in the digital age.