The Singapore Exchange (SGX) has announced plans to list Bitcoin (BTC) perpetual futures products for institutional and accredited investors in the second half of this year. This move aligns with the trend of traditional financial exchanges entering the cryptocurrency market.
Listing Period: Second half of 2024
Target Audience: Institutional and accredited investors (retail investors restricted under Singapore's financial regulations)
Product: Bitcoin perpetual futures (no expiration date, allowing for indefinite holding)
Goal: To expand institutional investor access to the cryptocurrency market based on a strict regulatory environment and credibility.
SGX stated, "In the cryptocurrency market where trust and stability are paramount, providing innovative products through a regulated platform will significantly expand institutional investors' access to the market."
Background and Market Situation:
Perpetual futures are popular products in the cryptocurrency market, but institutional investor participation has been limited due to the existing unstable market environment.
As seen in the FTX exchange bankruptcy case, the unregulated cryptocurrency market carries high risks.
Accordingly, traditional exchanges like SGX are actively trying to increase market credibility and attract institutional investors by offering cryptocurrency products.
In Singapore, two other traditional platforms, EDX Global and AsiaNext, already offer BTC perpetual futures.
Tel Aviv Stock Exchange to Upgrade Systems Based on DLT and AI
Meanwhile, the Tel Aviv Stock Exchange (TASE), Israel's only public securities market, is pushing for system upgrades using advanced technologies, including distributed ledger technology (DLT) and artificial intelligence (AI).
Conducting public consultations to improve clearing and settlement systems
Reviewing the introduction of advanced technologies such as DLT, AI, and cloud computing
Seeking system improvement plans in collaboration with New York-based consulting firm Oliver Wyman
Aiming to increase efficiency, prepare for increased trading volume, and enhance security levels by utilizing DLT
TASE has previously announced plans to issue tokenized government bonds and increase operational efficiency based on DLT. Through this system upgrade, TASE plans to provide various services, including digital asset support, custody, clearing and settlement, tokenization, liquidity access, staking, settlement, and interoperability solutions.
TASE has joined the ranks of traditional exchanges integrating DLT, such as the Stuttgart Stock Exchange and SIX Swiss Exchange. However, as seen in the Australian Securities Exchange's (ASX) attempt to build a blockchain-based clearing and settlement system, building blockchain-based systems is not always successful.
SGX's push to list Bitcoin perpetual futures and TASE's system upgrade plans show that the convergence of traditional financial markets and the cryptocurrency market is accelerating. These moves are expected to expand institutional investors' participation in the cryptocurrency market and contribute to increasing market credibility.
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