A recent report from TD Securities states that perpetual contracts are expanding beyond the crypto market, reaching commodities, stock indices, and valuations of unlisted companies. As US regulatory developments progress and institutional demand rises, these products are being viewed as a broader trading infrastructure.

Perpetual contracts expand to more assets

Perpetual contracts have no fixed expiration date and typically rely on funding rate mechanisms to keep prices close to a reference market. TD Securities states that these products currently account for the majority of global digital asset trading volume, approximately 80%.

The report notes that recent developments in the US market have driven this trend. The US Commodity Futures Trading Commission (CFTC) has allowed the prediction market platform Kalshi to list Bitcoin perpetual contracts. Coinbase has also stated its plans to launch US stock index perpetual contracts and facilitate access for US clients to the offshore perpetual market.

Hyperliquid trades crude oil over the weekend.

TD Securities views Hyperliquid as a representative platform of this shift. As one of the largest decentralized perpetual contract platforms, Hyperliquid has launched contracts related to commodities and private companies, with trading partners including private companies such as Cerebras and SpaceX.

The report specifically noted that while traditional commodity markets were closed on weekends during the conflicts between the US, Israel, and Iran this year, Hyperliquid continued trading. The notional trading volume of crude oil-related perpetual contracts on the platform had risen from approximately $25 million to over $550 million by the third weekend after its launch.

Predicting subsequent fluctuations in WTI

The report states that before the CME Group's crude oil market reopened, prices on Hyperliquid had already reflected approximately 80% of the subsequent fluctuations in West Texas Intermediate (WTI) crude oil. TD Securities believes this indicates that on-chain perpetual platforms are beginning to assume the price discovery function of traditional exchanges during certain periods.

This change has also attracted the attention of traditional exchanges. ICE and CME Group are pushing regulators to review Hyperliquid's crude oil-related products, while also studying similar products, indicating that competition between traditional market infrastructure and crypto-native platforms is intensifying.

Commodities may become the next growth direction

TD Securities predicts that commodities may become the next major growth driver for perpetual contracts, with crude oil, gold, and copper being the most likely to expand. The report also notes that it remains to be seen whether these products can maintain their attractiveness under stricter regulations if the US establishes a more formal regulatory framework.