Binance Expands into Energy Derivatives with New Futures
Binance is directly entering the traditional energy markets by launching USDT-margined perpetual contracts for West Texas Intermediate (WTI) Crude Oil, Brent Crude Oil, and Natural Gas. These listings, under the tickers CL, BZ, and NATGAS, allow traders to speculate on the prices of key global commodities using the stablecoin Tether (USDT) as collateral. This strategic expansion bridges crypto capital with traditional commodity volatility, enabling Binance to capture a new class of traders seeking to manage risk or gain exposure to energy prices outside of conventional market hours.
Crypto Giants Compete for 24/7 Commodity Trading
The launch positions Binance in an escalating race to offer around-the-clock access to traditional assets. The move follows similar initiatives from other major players. Crypto market maker Wintermute recently launched its own over-the-counter (OTC) contracts for difference (CFDs) for WTI crude oil, offering a bespoke alternative to exchange-listed futures. Meanwhile, decentralized exchange Hyperliquid has already demonstrated significant demand, with its WTI crude oil perpetuals seeing $1.2 billion in volume on March 23. The demand is driven by traders looking to react to geopolitical events that occur when traditional markets are closed.
We are seeing strong demand from counterparties looking to use digital asset infrastructure to trade traditional products like oil. The recent price action made that need much more immediate, as many investors were unable to act until traditional venues reopened.
— Evgeny Gaevoy, CEO of Wintermute.
Onchain Liquidity Trails TradFi Despite Weekend Volume Spike
Crypto-based commodity trading has proven its utility, particularly during weekends when traditional exchanges are closed. Onchain venues now process over $1 billion in daily oil futures volume during these periods, establishing themselves as a critical layer for price discovery when other markets are offline. This strategic push by crypto exchanges is broadening, as evidenced by Binance's recent listing of Tether Gold (XAUt), a tokenized version of gold with a market capitalization of approximately $2.5 billion. However, the onchain market's scale is still dwarfed by traditional finance. Daily trading in oil futures on the CME regularly reaches between $100 billion and $300 billion in notional volume, highlighting the significant liquidity gap that onchain platforms must overcome to attract large-scale institutional participation.
