Key Highlights
- Binance’s TradFi contracts let users trade gold and silver 24/7, combining crypto speed with regulated market oversight.
- Continuous USDT-settled trading allows instant portfolio adjustments, hedging, and leverage across traditional and digital assets.
- Real-time settlements highlight risks for legacy banks, showing how crypto’s speed challenges conventional risk management systems.
Binance has launched TradFi Perpetual Contracts, settled in USDT, letting users trade traditional assets like gold and silver 24/7. Announced on January 8, 2026, these contracts eliminate expiries and rollovers, giving traders continuous, straightforward access to commodities without the usual market limitations.
As per the press release shared with The Crypto Times, Binance aims to simplify portfolio management for both retail and institutional users globally. Jeff Li, VP of Product at Binance, commented, “The launch of TradFi Perpetual Contracts marks a key step in bridging traditional finance and crypto innovation. By providing round-the-clock access to conventional assets with a seamless, secure trading experience, we empower users to diversify and manage their portfolios more effectively.”
Binance is the first global exchange to secure full licensing under the Abu Dhabi Global Market (ADGM) framework, setting a new benchmark for regulated digital-asset trading. The contracts are offered through Nest Exchange Limited, a Binance entity regulated as a Recognized Investment Exchange by ADGM’s Financial Services Regulatory Authority (FSRA).
The first offerings, XAUUSDT and XAGUSDT, correspond to gold and silver. Binance plans to expand trading pairs, opening more pathways for crypto users and traditional investors to interact in a regulated environment.
24/7 market access and simplified trading
Perpetual contracts in TradFi provide their owners the opportunity to trade above the regular market hours, including overnight or during weekends. Binance will maintain the market open at any time, including early morning, late night, and pre- or post-market hours.
Therefore, traders can instantly act on market movements with less delay compared to conventional systems. Secondly, contracts settle in USDT, hence maintaining familiar currency exposure and transparent fees, enabling efficient diversification without needing to leave the security of Binance’s ecosystem.
Also, traders use leverage to change their position, hedge risks, or diversify. Binance provides market price feeds through its Price Index, refreshed every second when markets are open.
When it comes to the closed market, the index is unchanged in order to avoid sudden variations. Mark Price smoothes out variations, and restrictions such as commodities capping at +3% or –3% keep trading risks within acceptable bounds.
Bridging traditional finance and crypto
Binance’s approval under ADGM lets it run through separate licensed units, similar to how regular banks are structured. Co-CEO Richard Teng highlighted that the license “provides regulatory clarity and legitimacy, enabling Binance to support its global operations from ADGM.” Co-Founder Changpeng Zhao added on X, “This is a BIG DEAL! (I almost never use CAPS.)”
The innovation flips the conventional finance model. Gold and silver markets have fixed hours, leaving traders exposed overnight. Binance allows crypto-style continuous trading, giving both experienced crypto traders and traditional market participants flexibility. Users avoid custody complications, settle instantly in USDT, and gain operational simplicity, all while accessing leveraged positions.
However, Custodia Bank CEO Caitlin Long had a different opinion in August of last year. At the Wyoming Blockchain Symposium, the CEO warned that traditional banks may struggle in a crypto bear market.
She explained that, unlike traditional banks with backup systems, crypto trades happen instantly, so there’s no time to fix mistakes. This could cause serious cash flow problems if markets drop quickly, revealing weaknesses in how conventional institutions manage risk.
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