Singapore Exchange (SGX) is making a bold push to offer cryptocurrency perpetual futures to American institutional investors, positioning itself as the first major traditional bourse to bring one of crypto's hottest products into the mainstream financial fold. The exchange has filed an application with the Commodity Futures Trading Commission (CFTC) last month, seeking approval to open these contracts to US-based investors. As a registered foreign exchange, it can begin offering these instruments to American institutions if no regulatory objections surface within a ten-day window.

This strategic move allows the Singapore-based venue to tap into a far larger pool of hedge funds, asset managers, and proprietary trading firms, building on the bitcoin and ether perpetual futures it launched back in November. Perpetual futures, commonly known as "perps," have become a cornerstone of the crypto market, enabling traders to place leveraged bets without being tied to the expiration dates that burden traditional futures contracts. With regulators adopting an increasingly permissive posture, established exchanges are racing to roll out comparable products, carving out fresh competitive battlegrounds in a derivatives sector that generates hundreds of billions in monthly trading volume.

Yet there is a catch: bringing perpetuals into traditional finance means fundamentally altering some of the very characteristics that make them unique as crypto offerings. SGX's contracts trade for 22.5 hours per day, five days a week, require members to post 35% margin, and use fiat currency as collateral. The exchange also eschews the automatic deleveraging mechanisms found on many crypto-native platforms. Despite the underlying digital tokens trading around the clock, SGX sees no issue here, pointing to the specific clientele it is pursuing.

"We are targeting institutions, accredited investors, professional investors - the types who do not trade on weekends," KC Lam, head of crypto derivatives at SGX, said in an interview. Thus far, crypto-native trading venues continue to dominate liquidity by a wide margin. Decentralized platform Hyperliquid processes roughly $80 billion to $100 billion in monthly bitcoin and ether perpetual volume, while SGX has accumulated only about $6 billion in total volume since launching its perpetual futures. Opening these contracts to US institutions will test whether a broader institutional base can begin closing that gap.

"The US has some of the largest institutional participation in crypto - whether in futures or ETFs," Lam noted. "Moving into the US market feels like the natural next step for us."

Timing Is Everything

American investors have historically accessed crypto perpetuals mainly through offshore venues. But in May, the CFTC opened the door to domestic offerings, approving the first regulated bitcoin perpetual contract on Kalshi, a CFTC-registered exchange and prediction market operator. CFTC Chairman Michael Selig framed the decision as a step toward bringing one of crypto's most liquid segments under American regulatory oversight.

Hyperliquid's rapid ascent has only intensified the appeal of perpetuals, with users able to trade contracts tied to everything from stocks like SpaceX to commodities including oil and gold. That growth caught the attention of President Donald Trump, who noted in August that Selig was working to bring Hyperliquid to the US "in a fully compliant and legal manner." Trump offered no commitments or specific timelines. Against this backdrop, SGX believes the moment is ripe to introduce crypto perpetuals to the US market. Lam expects the move to boost trading activity. "Liquidity attracts liquidity," he said. "So more people will come to trade."

Exchange data shows SGX executed 29,655 bitcoin perpetual contracts and 6,758 ether perpetual contracts in August, bringing year-to-date volume through the first eight months to 353,825 contracts.

Competitive Landscape

Beyond Kalshi, crypto-native rivals are seizing on the improving regulatory environment to expand their footprint. Coinbase (COIN.US), the largest US crypto exchange, has aggressively entered this space. In May, the company announced its US-regulated futures commission merchant could offer global crypto perpetuals and options to institutional clients. Earlier this month, it revealed plans to file with the Securities and Exchange Commission to provide equity-linked perpetual contracts. The exchange notes that 80% of global crypto trading volume derives from derivatives.

SGX is betting it can carve out its own niche as a multi-asset venue serving professional investors. Through the Singapore exchange, institutions can trade crypto alongside other derivatives such as equities, interest rates, FX, and commodities. Lam also argues that accessing these products through an Asian exchange offers a distinct advantage for US investors currently constrained by local liquidity pools and trading hours. "After the US trading session ends, we can actually serve as a strong complement to their existing activity," he said.