Crypto exchanges chase TradFi commodities market as pricing gaps persist

Crypto exchanges are racing to capture the market share of TradFi trading venues, but tokenized commodities adoption remains limited by pricing and liquidity concerns.

Cryptocurrency exchanges are taking a growing market share from traditional finance (TradFi) trading venues through tokenized commodities products, but the mainstream adoption of tokenized precious metals remains limited by pricing and liquidity issues.

Silver perpetuals have reached about 40% of the equivalent volume of the Comex Silver (SI) Contract at their peak, the world’s largest silver futures market, which accounts for over 70% of global exchange-traded silver futures volume, according to a Thursday report from Binance Research.

During March and April, tokenized silver accounted for 14.90% and 14.98% of the Comex’s volume, respectively, up from just 1.37% in January.

Read more