Markets Outlook – Episode Summary
Podcast: Markets Outlook
Host: CoinDesk
Episode Title: SGX Group Launches Institutional Crypto Perpetual Futures
Date: December 6, 2025
Episode Overview
This episode focuses on the launch of institutional-grade perpetual futures for Bitcoin (BTC) and Ethereum (ETH) by Singapore Exchange (SGX) Group. Host Andy Baer interviews Laurent Poirot, Head of Strategy for Derivatives at SGX, delving into the significance of this development, its impact on crypto markets in Asia and globally, and the interplay between traditional finance (TradFi) and crypto-native trading products.
Main Discussion Points & Insights
1. The Asian Hub for Digital Asset Growth
- Laurent Poirot underscores Asia’s centrality in digital asset innovation, making Singapore a natural leader in bridging crypto and traditional finance.
"We have to acknowledge that Asia is the center of the growth in the digital asset space. So it's quite natural to see Singapore basically pushing a new limit by bringing its [crypto] listed perps on a traditional exchange." (00:00, 05:19)
2. SGX’s Multi-Asset Global Approach
- SGX is highlighted as a global, multi-asset exchange, offering access to hard-to-reach markets (China, India) and mastering both equities and commodities, especially in iron ore and FX.
"We have leadership position into the equities in regards of giving access to markets that are still difficult to connect with such as China, India... very strong in commodities thanks to our iron ore contract and in currency." (02:31)
3. The Launch of BTC and ETH Perpetual Futures
- Announcement of the launch of the first SGX perpetual futures on BTC and ETH, filling a key gap in the Asian institutional crypto derivatives landscape.
- Overwhelming support from both crypto-native and institutional (TradFi) market participants, with clearing members and asset managers actively engaging from day one.
“We launched the first perpetual on BTC and ETH... The launch has been well supported by the market… as well as asset managers who are watching what we are providing because for them it might be a new tool.” (03:38)
4. Product Design and Regulatory Process
- The complexity of introducing perpetuals (products without expiry) within a robust regulatory environment, collaborating closely with Singapore’s MAS.
- Focus on making the traditional and crypto-native contract structures as compatible as possible, leveraging each ecosystem’s strengths.
"We are very much playing the convergence between actually the two ecosystem and having a contract that is as close as possible to the most liquid ones in the native space will facilitate the convergence of the flow." (05:19)
"Singapore has been supportive of the development of digital assets for quite a while. They started actually in 2020, then actually in June they came back with another set of regulation...it was on us to do the technical work, make sure that we can manage such a new payoff on our trusted infrastructure..." (06:14)
5. Mechanics and Market Benefits
- Perpetuals lack a natural expiry/maturity, so liquidation risk management becomes crucial; SGX brings robust risk controls and centralized clearing.
- Funding events occur once a day (vs. 3x8hr cycles in crypto-native platforms). This required coordination with market makers and participants.
- Trade-off: Less frequency in funding offers alternative trading strategies and potentially lower operational complexity.
"If we come with only once a day funding rate, is it acceptable, is it manageable?...It provides some form of new strategies… you can enter into a Spotlight, contract over 22 hours and decide if you want to be exposed or not exposed to the funding rate." (08:58)
6. Early Market Dynamics and Funding Rate Formation
- Initial days showed a “sticky” funding rate but began to align with native market rates after a week as new participants engaged in arbitrage and relative value trades.
“The first four or five days ... we had a very sticky funding rate... But since actually Monday evening session, so after 4pm Asia, we have seen our funding rate starting moving much more aligned with the price action in other native [markets].” (12:21)
7. Collateral and Flow
- For now, eligible collateral remains “traditional,” but the market is adapting fast with new on/off-ramp solutions aiding capital flow between crypto and TradFi, decreasing friction vs. previous years.
“Today it's much, much less [of a weakness]. The market is adapting and you can see that the capital can start flowing.” (14:03)
8. Retail Participation and Market Evolution
- SGX’s contract is currently for accredited/professional investors only; retail participation restricted at launch.
- Poirot hints that Asian retail adoption may flow from ETF products before derivatives, but strong institutional demand and regulatory caution establish the current roadmap.
“Our contract is for accredited investors or professional investors only. So no retail per se for the start.” (15:04)
“I would say we need to proceed step by step....In our case, we already see a strong demand by institutional investors...this money basically is going to channel through institutional pipes and we will be there to serve the institutions.” (15:34)
Notable Quotes & Timestamps
- Asia’s Leadership: "Asia is the center of the growth in the digital asset space." – Laurent Poirot (00:00, 05:19)
- Institutionalization of Crypto: "Market is trying to find a bottom, I guess a lot of attention to positioning, liquidation and positive signals... maybe it's a sign that this market is becoming more institutional." – Laurent Poirot (01:26)
- Cross-Ecosystem Convergence: "The two ecosystem basically needs each other to consolidate the role of the asset adoption." – Laurent Poirot (05:19)
- Product Structure Tradeoffs: “Unfortunately we had to make a trade off, but we have been working with the market makers...if we come with only once a day funding rate, is it acceptable, is it manageable?” – Laurent Poirot (08:58)
- Retail Restrictions: “Our contract is for accredited investors or professional investors only. So no retail per se for the start.” – Laurent Poirot (15:04)
Key Segment Timestamps
- SGX’s Unique Market Role: 02:31 – 03:24
- Announcement of Perpetuals Launch: 03:38 – 04:31
- Perpetual Futures Market Fit & Regulatory Challenges: 05:19 – 07:49
- Contract Mechanics & Benefits: 08:33 – 11:41
- Funding Rate Dynamics & Arbitrage: 11:41 – 13:39
- Collateral and Market Adaptation: 13:39 – 14:38
- Retail vs. Institutional Participation: 14:38 – 16:50
Memorable Moments
- Laurent Poirot’s reflections on the market’s process in normalizing volatility post-holidays and what that signals about growing institutional participation. (01:26)
- The insight that in Asia, exchange-traded crypto derivatives are evolving under robust regulatory oversight—moving the center of "perps" innovation from crypto-natives to regulated TradFi. (05:19)
- Emphasis on the idea that a more diverse and liquid derivatives market—now callable on a trusted legacy infrastructure—empowers both asset managers and institutional traders to enter crypto exposure. (03:38, 14:03)
Conclusion
This Markets Outlook episode offers a detailed look at the intersection of traditional market infrastructure and crypto innovation through SGX’s new perpetual futures. The dialogue emphasizes Asia’s leadership, strong institutional interest, and the measured approach needed to responsibly open up access to this new asset class, setting the stage for evolving engagement from both traditional and crypto-native participants.