Key Takeaways
- • U.S. online brokerage Webull plans to launch perpetual futures trading next month, in partnership with prediction market platform Kalshi, initially offering products linked to crypto assets such as Bitcoin, according to financial industry sources cited by Asia Business Daily.
- • Webull US CEO Anthony Denier said perpetual futures have become an important part of the global derivatives market and that the firm aims to bring them into the U.S. regulated futures market.
- • Cumulative trading value in offshore perpetual futures linked to individual Korean stocks reached approximately $176 billion across 11 global offshore crypto exchanges from February 19 to August 8, according to Eugene Investment & Securities.
- • Korea's Financial Services Commission warned that overseas perpetual futures carry highly leveraged structures and may not provide investor protection under Korean law, and said it will review whether similar products should be introduced domestically.
- • Korea Capital Market Institute senior research fellow Nam Gil-nam warned that growing perpetual futures activity could reduce their contribution to domestic price discovery.
Summary
Perpetual futures, a derivative that originated in crypto markets, are moving into traditional finance. Unlike conventional futures, perpetual contracts have no expiration date and can be held indefinitely. Instead of converging with spot prices at maturity, they use funding fees to keep futures prices aligned with the underlying asset: when a perpetual trades above spot, long holders pay short holders, which discourages the gap. According to the article, the mechanism was popularized after BitMEX introduced Bitcoin perpetual futures in 2016, and the widespread use of the dollar stablecoin Tether for margin and settlement made it easier for traders to manage collateral risk and trade multiple products from a single margin account.
U.S. online investment platform Webull is preparing to launch perpetual futures trading next month in partnership with Kalshi. The initial offering will focus on crypto assets such as Bitcoin, with expansion to other underlying assets planned subject to regulatory review. Webull US CEO Anthony Denier said the products would bring widely used global instruments into the U.S. regulated futures market.
The expansion beyond crypto to traditional financial assets, including individual stocks, is drawing attention in Korea. According to Eugene Investment & Securities, offshore perpetual futures linked to Korean equities traded on 11 global offshore crypto exchanges reached cumulative value of approximately $176 billion between February 19 and August 8. Nam Gil-nam of the Korea Capital Market Institute cautioned that greater activity in these contracts could diminish their role in domestic price discovery.
Regulators are taking a cautious stance. The Financial Services Commission said perpetual futures on overseas crypto platforms are highly leveraged and may fall outside Korean investor protections, and that it will weigh their market impact, investor protection, and global regulatory developments before deciding whether similar products should be permitted domestically. An industry official noted that lawsuits overseas are testing whether contracts without expiration dates qualify as futures, even as regulated products launch and securities firms prepare to offer them. The official said Korea's near-term focus remains on managing investor losses from leveraged trading on overseas platforms and the risk of illegal business operations.
U.S. online investment platform Webull is preparing to launch perpetual futures trading next month in partnership with Kalshi. The initial offering will focus on crypto assets such as Bitcoin, with expansion to other underlying assets planned subject to regulatory review. Webull US CEO Anthony Denier said the products would bring widely used global instruments into the U.S. regulated futures market.
The expansion beyond crypto to traditional financial assets, including individual stocks, is drawing attention in Korea. According to Eugene Investment & Securities, offshore perpetual futures linked to Korean equities traded on 11 global offshore crypto exchanges reached cumulative value of approximately $176 billion between February 19 and August 8. Nam Gil-nam of the Korea Capital Market Institute cautioned that greater activity in these contracts could diminish their role in domestic price discovery.
Regulators are taking a cautious stance. The Financial Services Commission said perpetual futures on overseas crypto platforms are highly leveraged and may fall outside Korean investor protections, and that it will weigh their market impact, investor protection, and global regulatory developments before deciding whether similar products should be permitted domestically. An industry official noted that lawsuits overseas are testing whether contracts without expiration dates qualify as futures, even as regulated products launch and securities firms prepare to offer them. The official said Korea's near-term focus remains on managing investor losses from leveraged trading on overseas platforms and the risk of illegal business operations.
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