Binance Holdings Ltd., the world's largest virtual asset exchange, will launch a perpetual futures product that tracks the KOSPI, including Samsung Electronics and SK hynix. In effect, Korea's stock market will be transacted 24 hours a day, 365 days a year on an overseas exchange.
On the 13th, according to the virtual asset industry, Binance Holdings Ltd. will list the "EWY USDT" index perpetual futures from 1:30 p.m. on the 16th (10:30 p.m. on the 17th Korea time).
The underlying asset is the "iShares MSCI South Korea (EWY)" exchange-traded fund (ETF) listed on the NYSE Arca. EWY is a product that invests in 83 large and mid-cap stocks listed on the domestic stock market, including Samsung Electronics and SK hynix.
Tether (USDT) is used as margin for this product, and up to 10x leverage is supported. Other virtual assets such as bitcoin can be used as cross margin.
In addition to Binance Holdings Ltd., there were exchanges that launched perpetual futures tracking some domestic stocks. The decentralized exchange (DEX) Lighter has launched on-chain perpetual futures based on Samsung Electronics, SK hynix, and Hyundai Motor since last year. The real-world-asset-based on-chain derivatives transaction platform TradeXYZ also listed derivatives based on the same stocks.
These are decentralized exchanges where users transact virtual assets directly without intermediaries. Binance Holdings Ltd. is the first centralized exchange (CEX) to list index futures based on a domestic stock market ETF.