Binance Launches TradFi Perp Futures Tied To US Treasury Bonds, ProShares Bitcoin ETF

Binance Futures has launched three new USDⓈ-M perpetual futures contracts based on the U.S. Treasury bond ETFs and the ProShares Bitcoin ETF. It is looking to add to its growing list of tokenized traditional finance derivatives. The contracts started being rolled out on July 27 as per Binance Exchange Rule 17.

Binance Futures To Introduce New Bitcoin

The TMFUSDT perpetual trading started at 13:30 UTC. It follows the Direxion Daily 20+ Year Treasury Bull 3X ETF, a leveraged equity fund that tracks the performance of the 20-year average U.S. Treasury bond.

Five minutes later, Binance launched TBTUSDT, which is a short-term bet on the ETF Shares UltraShort 20+ Year Treasury (NYSE:UPR). The exchange added BITOUSDT at 13:40 UTC, which stands for the ProShares Bitcoin ETF.

The trading fees of all three perpetual contracts are settled in USDT. Binance states that they will be trading 24 hours a day. Leverage up to 25x is available on the new products.

The exchange has also established the minimum order size to be 0.01 units per contract. Each trade should have at least a notional value of 5 USDT.

Payments for funding will be made every 8 hours. The funding rate has been limited to a maximum of +2.00% and -2.00%. Binance also refuted it by stating that the interest rate in the funding formula calculations has been corrected to 0%.

What Are The Important Things To Consider?

In addition, the exchange has announced that the newly listed contracts will be in support of Multi-Assets Mode. This feature enables users with eligible assets to choose a combination of eligible asset types as margin rather than a single asset type.

Binance added that it has a funding interval adjustment mechanism that doesn’t apply to these contracts. If the funding is full or no money is available, the settlement cycle will be eight hours. It will not automatically change to one hour intervals.

Further, the crypto derivates exchange noted that the trading parameters may be adjusted as per market changes. These changes may impact leverage, funding fees, tick size and initial and maintenance margins.

Binance also stated that this listing notice will overrule any conflicting information provided in its Futures FAQ, which was the latest reference for the three contracts.