From November 24th, the Singapore Exchange (SGX) will officially launch permanent futures on Bitcoin (BTC) and Ethereum (ETH).
This is not only the SGX’s first major deployment in the digital asset space, but also a key step in institutionalizing crypto-finance in the Asian market.
As the average daily trading volume of crypto derivatives globally surpasses $187 billion, Asia becomes the fastest-growing region, and institutional demand continues to climb, Singapore is attempting to build a digital asset system that is safer, more transparent, and closer to traditional financial standards.
This article will analyze the impact and strategic significance of this launch on the industry from three levels: system, market and ecology.
I. Institutional level: permanent futures become a compliant entry point for institutions to participate in digital assets
1. “No expiration date + funding rate” mechanism, which makes the contract closer to the real price
The best feature of Perpetual Futures (PF) is that it has no expiration date, which makes it the most traded crypto derivative in the world.
The SGX is using two institutional-level mechanisms this time:
- No maturity design: suitable for long-term hedging, strategic allocation
- Funding Rate Mechanism (Funding Rate): aligns contract prices with the underlying index
- Benchmarking with the iEdge CoinDesk Index: Enhancing Transparency and Price Reliability
For institutions, this is the first time that long-term strategy management of BTC/ETH is possible in a regulated environment.
2. Acting as a “compliance bridge” between traditional finance and the crypto-economy
SGX noted two main purposes for launching the product:
- Meeting the growing crypto asset allocation needs of institutions
- Connecting traditional financial infrastructure to crypto native markets
In other words, in the past, when institutions wanted to do crypto hedging, they could only use overseas offshore platforms;
Today, with SGX, institutions can:
- Settle locally
- Use familiar exchange processes
- Security through custodianship, risk control and compliance systems
This is a major step forward at the institutional level.
Second, market level: for the first time, Asia is in a position to compete for pricing power in crypto derivatives
1. Asia’s fastest-growing user base, but long lacking a “local pricing center”
SGX noted in its announcement:
“Asia is the epicenter of crypto derivatives growth, but pricing and settlement are still largely dominated by extra-regional platforms.”
That means:
- Funding from Asia
- Users from Asia
- Volatility strongest in Asia
- But the prices aren’t set in Asia.
The addition of SGX will help:
- Bringing liquidity back partially from the offshore platform to the local level
- Provide a more transparent price discovery mechanism
- Enabling institutions to use regulated products rather than high-risk offshore platforms
This will be a deep repair of the regional financial market structure.
2. Positive feedback from market participants: what institutions are really missing is “regulated derivatives”
SGX said the offering was well received, especially from:
- Asset management organization
- Quantitative trading firms
- Family Office
- Structured product issuers
Their consensus is:
Asia needs a secure, transparent and compliant digital derivatives center.
This is where SGX has a natural advantage.
III. The ecological dimension: Singapore is building an infrastructure layer for digital asset finance
Perpetual Futures is just the beginning.
From an ecological perspective, it means more possibilities:
1. Laying the groundwork for future crypto ETFs, options, structured products
In mature capital markets, futures will always be the lowest level of infrastructure in the derivatives system.
After SGX goes online with BTC/ETH permanent futures, the foreseeable future development includes:
- crypto options
- Multi-Asset Crypto Index
- Encryption-related structured notes
- ETF Hedge System
- Quantitative Arbitrage Ecology
This will gradually form a complete digital asset financial ecosystem.
2. Singapore strengthens its global positioning as a “trusted digital asset center”
In recent years, Singapore has continued to promote:
- Institutional-level hosting
- Distributed Ledger Technology (DLT) Payment Clearing Pilot
- Asset tokenization projects (e.g. Project Guardian)
- Financial Institutions Engage in Digital Asset Innovation
SGX This action is fully aligned with the national strategic direction:
Building a next-generation financial system with regulatory strengths, compliance infrastructure, and technology capabilities together.
3. Enhancing Singapore’s attractiveness to global institutions
For multinational corporations, asset management companies, and family offices, Singapore is delivering:
- The digital asset environment with the clearest regulations
- Derivatives market closest to the logic of traditional capital markets
- The most controllable risk management system
This will significantly enhance Singapore’s voice in the global digital asset race.
Conclusion: Perpetual Futures Marks “Infrastructure Building Phase” for Digital Finance in Singapore
The official launch of permanent futures on bitcoin and ethereum is a key step for the SGX in the digital economy.
It not only bridges the gap of Asia’s long-standing lack of institutional-grade derivatives, but also signals a deeper trend:
Singapore is upgrading from a “capital flow center” to a “digital asset infrastructure center”.
In the future, as more specialized products, indices, clearing systems and cross-border cooperation emerge, the
Singapore’s position in the global crypto-finance landscape will become increasingly important.
