$90 Trillion Perpetual Futures Market Heads to Wall Street with Caveats

The $90 trillion perpetual futures market is making its way to Wall Street, but big banks are taking it slow. Perpetual futures have been a staple of crypto trading for years, particularly among investors outside the US. With companies like Kalshi and Coinbase receiving regulatory approval, it's clear that these contracts will soon be available in regulated American markets.

Kalshi's perpetual futures saw $1 billion in trading volume within just one week of launch in June. The exchange has since sought approval to offer perpetual futures tied to gold and silver, indicating the product may not stay confined to Bitcoin (BTC) and other digital assets.

Despite interest from Wall Street, large financial institutions are still studying the products rather than preparing major launches. Big banks face stricter capital rules, client obligations, and reputational risk, making it more difficult for them to adopt this new product.