CFTC Opens the Door for US Institutions to Singapore Exchange Bitcoin and Ether Perpetual Futures

The Commodity Futures Trading Commission has granted Singapore Exchange authorization to open its Bitcoin and Ether perpetual futures to eligible United States institutional investors, giving American trading firms direct access to Asian crypto derivatives liquidity for the first time.

The authorization was granted under Regulation 48.10, a rule that allows a Foreign Board of Trade — an overseas exchange recognized by the CFTC — to offer qualifying US participants direct access to its electronic trading system. SGX can therefore make its existing contracts and order books accessible to American institutions without creating separate US listings or registering the Singapore venue as a domestic exchange.

“Under the Regulation 48.10 ruling, we have obtained CFTC authorization to open our crypto products to US institutional access. Previously, US participants couldn’t trade these contracts but now they can,” KC Lam, SGX Group’s head of crypto derivatives, told CoinDesk.

5.8 billion USD in cumulative volume

The approval applies to SGX’s Bitcoin perpetual futures, traded under the ticker BTP, and Ether perpetual futures, known as ETP. Both products launched in late November 2025 and operate without an expiry date, mimicking the perpetual swap structure popularized by offshore crypto exchanges but inside a regulated traditional finance wrapper.

Since launch, the two contracts have generated 5.8 billion USD in cumulative trading volume, equivalent to roughly 400,000 lots. Average daily volume across the pair reached 1,300 lots, or 19 million USD, as of August. Bitcoin has represented 83 percent of average daily trading volume since inception and 66 percent of outstanding open interest, underscoring where institutional demand remains concentrated.

The exchange’s busiest session to date saw 11,500 lots change hands, representing 145 million USD in notional value.

Lam described the authorization as “an important milestone” that connects US traditional finance participants trading crypto futures with Asian liquidity pools, and said the regulatory route helps cement crypto derivatives as a recognized asset class within conventional market infrastructure.

Not immediate access

American participation is not expected to appear immediately. Institutional clients still need to complete SGX’s onboarding process: new users are brought in through clearing members and must complete know-your-customer checks, fund their accounts and establish API connections.

Lam said the process normally takes two to four weeks regardless of where a client is based. SGX has completed its FIS-enabled back-office integration and is preparing US clearing members to onboard clients over the next one to two months.

The gradual ramp-up mirrors how institutional demand for regulated crypto derivatives has developed through other structures. Coinbase Financial Markets received a regulatory route in May allowing eligible American institutions to access global crypto derivatives, initially through contracts listed on Deribit, relying on CFTC staff positions covering foreign futures and related margin requirements.

A different risk model from crypto-native venues

Although SGX’s contracts have no expiration date, their risk management structure differs sharply from the perpetual futures traded on crypto-native platforms. The exchange uses margin calls and requires traders to post additional collateral when positions fall below requirements, rather than closing positions through the automatic liquidation engines standard on crypto exchanges.

“Unlike crypto-native venues where sudden volatility can trigger auto-liquidations, our traditional risk framework uses margin calls and top-up collateral to prevent involuntary position closures during market spikes,” Lam said.

Automatic liquidations occur when leveraged positions develop a margin shortfall as prices move against traders. Crypto exchanges typically close such positions automatically, a process that can produce clusters of forced selling or buying during sharp market moves — the very dynamic SGX’s model is designed to avoid.

SGX also separates trading and clearing functions, with clearing members sitting between the exchange and clients as an intermediate risk buffer. “By routing trades through clearing members who act as an intermediate risk buffer, we mirror the proven infrastructure of traditional futures and commodities markets,” Lam added.

Stablecoins are not accepted as collateral for the contracts. Lam said the exclusion was deliberate, because stablecoins can lose their peg during periods of market volatility. The contracts instead settle against benchmarks jointly developed with CoinDesk Indices, which SGX says are managed under the European Union Benchmark Regulation.

Regulated perps keep expanding

The CFTC authorization lands as regulated perpetual futures gain ground in the United States. In May, the commission approved the first regulated Bitcoin perpetual futures for listing on a US exchange, opening a domestic path for a contract type that had been concentrated on offshore platforms. Kraken followed in June, launching perpetual futures for eligible US traders through its CFTC-regulated derivatives business Bitnomial.

SGX’s approach differs from both: rather than listing new US contracts, it extends the reach of contracts already trading in Singapore.

The pipeline does not stop at perpetuals. Lam said SGX plans to develop dated Bitcoin and Ether futures and options next, with infrastructure work for those products representing the main technical hurdle. Once that system is operating, adding other major cryptocurrencies should become closer to routine contract development.

“We plan to broaden our offerings but we are taking a disciplined, step-by-step approach,” Lam said.

For US institutions, the practical effect is a second regulated door into crypto derivatives exposure — one denominated in Asian liquidity, cleared through traditional members, and supervised by a regulator that has spent 2026 steadily bringing the perpetual futures market under its oversight.