Perpetual futures are starting to move beyond their origins and emerge as a broader asset class beyond crypto, according to a new report from TD Securities.
The bank said recent regulatory developments in the United States and growing institutional demand are helping transform perpetual futures, commonly known as “perps,” from a niche crypto instrument into a market structure that could ultimately encompass commodities, stocks and private market investments.
“PERPs are no longer just a crypto product. They are becoming a broader market structure product,” wrote TD Securities.
Perpetual futures contracts differ from traditional futures contracts because they do not expire. Instead, they rely on funding rate mechanisms that keep prices aligned with underlying markets. Contracts have become the dominant trading vehicle in crypto, accounting for approximately 80% of global digital asset trading volumes, according to TD.
Momentum accelerated last month when the Commodity Futures Trading Commission (CFTC) authorized bitcoin. perpetual futures contracts to trade on Kalshi prediction market platform. Around the same time, Coinbase (COIN) announced plans to launch U.S. stock index perpetual futures and moved closer to connecting U.S. customers with offshore perpetual futures markets.
The report claims that institutional demand extends beyond cryptocurrencies. Hyperliquide (HYPE), the largest decentralized perpetual futures platform, now offers contracts linked to commodities and private companies. The exchange has become a venue for trading pre-IPO contracts related to companies such as Cerebras and SpaceX, allowing traders to speculate on valuations ahead of the public listing.
The growth of hyperliquidity is also beginning to challenge the traditional role of exchanges such as CME Group in price discovery.
TD highlighted trading activity during the conflict between the United States, Israel and Iran earlier this year, when commodity markets were closed for the weekend but Hyperliquid remained open. According to the report, the notional volume of oil-related perpetual futures contracts on the platform increased from around $25 million to over $550 million in the third weekend of trading. Hyperliquid also accounted for approximately 80% of the subsequent movement in West Texas Intermediate crude before the CME market reopened.
“The importance was not only volume, but also price discovery before traditional commodity markets reopened,” TD wrote.
The trend extends beyond commodities. TD said Hyperliquid’s pre-IPO perpetual futures contracts tied to companies including Cerebras and SpaceX have become an early test of whether blockchain-based markets can help establish valuations before shares begin trading publicly.
This growth has attracted the attention of historical exchanges. TD noted that ICE and CME have pushed regulators to review Hyperliquid’s oil-related products while exploring similar offerings themselves, highlighting a growing battle between traditional and crypto-native market infrastructures.
TD expects commodities to be the next major growth area for perpetual futures, with oil, gold and copper among the most likely candidates. As regulators move toward creating a formal U.S. framework for the products, the bank said the bigger question is whether perpetual futures can maintain their appeal once they come under stricter oversight.
