Top crypto exchange Binance has surpassed $70 billion in commodity trading volume after launching gold and silver futures trading. Binance is near the top of centralized exchanges that are expanding beyond traditional digital assets to capture demand for broader speculative and hedging opportunities. The trading only launched early this year, but has proven extremely successful for one of the world’s largest crypto trading platforms.
Binance offers 24/7 trading of gold and silver through USDT-margined perpetual futures contracts (XAUUSDT, XAGUSDT), providing synthetic, non-physical exposure to price movements. Precious metals have experienced a rebound in price over the past week, likely contributing to the hike in commodity trading volume.
In addition to the successful gold and silver futures trading, Binance’s stablecoin reserves have also surpassed $45 billion. The exchange’s reserves now hold 65% of all stablecoins on centralized exchanges. That 65% figure refers to USDT plus USDC balances that are sitting in centralized exchange wallets attributed to each venue. In other words, it is measuring stablecoins held in exchange-controlled addresses.
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As the U.S. prepares for a major overhaul that could influence the next phase of crypto big time, stablecoins on exchanges are piling up. Loosened regulations on crypto have hyped up the stablecoin market in the past year and sparked supply. With Binance housing the majority of that stablecoin reserve, capital continues to concentrate there.
However, previous metals are picking back up, putting Binance in a great position to capitalize on two emerging markets that could hedge against fiat.