Singapore Exchange (SGX) is preparing to offer cryptocurrency perpetual futures to institutional investors in the United States, positioning itself as the first major traditional exchange to bring this popular crypto trading product into the mainstream financial system. The exchange submitted an application to the Commodity Futures Trading Commission (CFTC) last month, seeking approval to offer these contracts to American investors. As a registered foreign exchange, if no regulatory objection is raised within 10 days, it can begin providing these products to US institutions.

This move allows SGX to tap into a larger pool of hedge funds, asset management firms, and proprietary trading companies, following the launch of bitcoin and ethereum perpetual futures last November. Perpetual futures, commonly known as "Perps," have become a cornerstone of the cryptocurrency market, enabling traders to place leveraged bets without the expiration dates associated with traditional futures contracts. As regulators adopt a more welcoming stance, major traditional exchanges are rolling out similar products, opening a new competitive front in a derivatives market that generates hundreds of billions of dollars in monthly trading volume.

However, there is an important consideration: bringing perpetual contracts into traditional finance requires altering some of the characteristics that make them a unique crypto offering. SGX contracts trade 22.5 hours a day, five days a week, with members required to post 35% margin and use fiat currency as collateral. The exchange also does not employ the auto-deleveraging mechanisms found on certain crypto platforms. Although the underlying crypto tokens trade around the clock, SGX does not view this as a limitation, pointing to the type of clients it is pursuing.

"We are targeting institutions, qualified investors, professional investors — those who do not trade on weekends," said KC Lam, head of crypto derivatives at SGX, in an interview. To date, crypto-native trading platforms still command the vast majority of liquidity. Decentralized platform Hyperliquid processes approximately $80 billion to $100 billion in monthly bitcoin and ethereum perpetual contract trading, while SGX has accumulated about $6 billion in total volume since launching its perpetual futures. Opening these contracts to US institutions will test whether a larger institutional client base can begin to close that gap. "The US has one of the largest institutional participations in crypto — whether in futures or ETFs," Lam said. "I think moving to the US market is a natural step for us."

Timing is critical

American investors have historically accessed crypto perpetual contracts primarily through offshore platforms. However, in May, the CFTC opened the door for offering these products domestically by approving the first compliant bitcoin perpetual contract on Kalshi, a CFTC-registered exchange and prediction market operator. CFTC Chairman Michael Selig described the move as a step toward bringing one of crypto's most liquid market segments under the US regulatory framework. The rapid growth of platforms like Hyperliquid has further reinforced the appeal of perpetual contracts, where users can trade instruments linked to assets ranging from stocks like SpaceX (SPCX.US) to commodities such as oil and gold. This growth caught the attention of President Trump, who stated in August that Selig was working to bring Hyperliquid "into the US in a fully compliant and legal manner." Trump made no commitments or provided no timeline.

Within this context, SGX believes the timing is right to bring crypto perpetual contracts to the US. Lam said he expects this move to help boost trading volumes. "Liquidity begets more liquidity," he said. "So more people will come to trade." According to exchange data, SGX recorded 29,655 bitcoin perpetual contracts and 6,758 ethereum perpetual contracts in August, bringing the total volume for the first eight months of the year to 353,825 contracts.

Industry competitive landscape

Beyond Kalshi, crypto-native competitors are also capitalizing on the improved regulatory environment. Coinbase Global, Inc. (COIN.US), the largest US crypto exchange, has aggressively entered the market. In May, the company said its US-regulated futures commission merchant could offer global crypto perpetual contracts and options to institutional clients. Earlier this month, it revealed it had filed with the Securities and Exchange Commission to offer equity-based perpetual contracts. The exchange noted that derivatives account for 80% of global crypto trading volume.

SGX is betting it can carve out a niche in this market by positioning itself as a multi-asset exchange for professional investors. Through SGX, institutions can trade crypto alongside other derivatives such as equities, interest rates, foreign exchange, and commodities. Lam also noted that accessing these products through an Asian exchange would be an advantage for US investors currently limited by local liquidity pools and trading hours. "After the US trading session ends, we can actually serve as a strong complement to their existing trading activities," he said.