SGX Eyes 2025 Listing of Crypto Perpetual Futures to Attract Institutional Investors

The Singapore Exchange (SGX) has confirmed that it is considering the listing of cryptocurrency perpetual futures contracts by the end of 2025, according to its president [1]. This development is intended to satisfy the increasing demand from institutional investors in the cryptocurrency market, while underscoring the inherent risks and complexities of the asset class. The exchange has clearly stated that these products are not suitable for retail investors [1].

The potential listing reflects the broader trend in traditional financial markets to adapt to the growing influence of digital assets. As exchanges and regulators increasingly explore structured financial instruments, the introduction of a regulated perpetual futures contract would offer institutional participants an advanced tool for hedging exposure or speculating on crypto price movements without the need to hold the actual underlying assets [1].

The timing of the announcement suggests that SGX has already initiated both regulatory and operational preparations. Perpetual futures contracts, which are widely used in the native crypto market, do not have an expiration date and are particularly favored for long-term positioning. The exchange's plan could position it to compete with other major exchanges that have already launched similar products, such as CME Group and Binance [1].

This strategic direction highlights how leading exchanges are shifting their focus in the crypto space. Rather than targeting individual traders, they are now prioritizing the needs of sophisticated investors, including hedge funds, asset managers, and trading firms, who require reliable infrastructure and regulatory clarity to operate effectively [1]. This shift aligns with the broader trend of financial institutions developing crypto-related capabilities to meet client demand and maintain competitiveness in an increasingly digitized economy.

Although no specific details about the product have been disclosed—such as the underlying assets, leverage ratios, or margin requirements—the listing is expected to meet SGX’s regulatory and risk management standards [1]. The announcement marks a significant step in the integration of digital assets into traditional financial markets.

The potential launch also reflects the ongoing evolution of the crypto derivatives market, which has experienced rapid growth in recent years. As more regulated exchanges consider launching crypto futures and options, the market may see increased liquidity and improved price discovery, further narrowing the gap between traditional and digital finance [1].

Source:

[1] Moomoo, "交易所计划在年底前上市加密货币永续期货合约," https://www.moomoo.com/hans/news/flash/20875282/the-stock-exchange-plans-to-list-a-cryptocurrency-perpetual-futures