Key Highlights
- RWA perps are growing fast, with their share of daily on-chain perp volume reaching 37% in July.
- Stocks and commodities are leading demand, helped by 24/7 trading and growing interest in pre-IPO markets.
- DWF Labs expects RWA perps to grow further, but says liquidity, pricing, market listings and regulation will be key.
DWF Labs, a top crypto market maker and liquidity firm, says real-world asset (RWA) perpetuals could become a much bigger part of the derivatives market as traders look for easier access to stocks, commodities and other assets around the clock.
In a Saturday post on X, the firm said the market is still young, but its fast growth shows that demand for these products is already building.
RWA perps are still a young market
RWA perpetuals are contracts that let traders take price positions on traditional assets without directly owning them. Unlike many traditional markets that close at set times, these contracts can trade 24/7.
DWF Labs said RWA perps are still 30 to 60 times smaller than crypto perps and CME equity futures, leaving plenty of room for growth.
The growth so far has been quick. DWF Labs said RWA perps made up as much as 37% of daily on-chain perp volume in July, doubling their share in four months. The firm also said the market barely existed six months ago. Stocks and commodities are currently seeing the most activity, with equity trading growing faster in recent months.
24/7 trading creates new opportunities
One reason behind the demand is that traditional stock and commodity markets do not run all day and all night.
A major event can happen when those markets are closed, leaving traders waiting for them to reopen. RWA perps can give traders a way to take positions during those hours, including weekends.
Pre-IPO trading is another growing use. Crypto platforms are offering perpetual contracts tied to private companies such as SpaceX, OpenAI and Anthropic.
These markets can give traders a way to bet on the possible value of a company before its shares begin trading publicly. They can also provide an early signal of what traders think the company may be worth.
Crypto exchanges are joining the market
On-chain platforms have led the early growth, but centralized exchanges are now joining the race.
For instance, Binance has moved into 24/5 trading of tokenized U.S. equities, while Coinbase has introduced pre-IPO perpetuals. Bybit is also already preparing its “Perp Options” product, starting with SpaceX and Nvidia and allowing 24/7 trading.
At the same time, Coinbase, Kraken and Robinhood have also expanded their work around stock and equity trading.
DWF Labs believes the battle between platforms will not simply be about who has the biggest trading volume. It said liquidity, the speed at which new markets can be launched, reliable pricing systems and regulatory approval will matter more as the sector grows.
Liquidity is especially important because a new market needs enough buyers and sellers to allow trades to happen smoothly. On-chain platforms can use liquidity pools to support new markets instead of waiting for traditional market makers to provide liquidity.
The growth also comes with risks
But the fast-growing market also comes with risks. DWF Labs warned that pricing can become difficult when traditional assets are traded continuously while the real markets are closed. A pricing error can have serious results.
The firm pointed to a SpaceX perpetual contract that dropped 45% in 30 minutes after an off-chain data provider mishandled a five-for-one stock split. The incident liquidated 405 users across 1,393 positions worth about $1.51 million.
DWF Labs expects on-chain platforms to remain a place where new RWA products are tested and developed, while centralized exchanges and traditional brokerages could help bring those products to a wider group of traders.
“We expect perps to capture a sizable portion of total derivative trading volume for all assets,” DWF Labs said.
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