Binance has become a key player in 24/7 trading of gold and silver, merging traditional finance with cryptocurrency markets, according to DL Research.
Binance has become a pivotal platform for the continuous trading of gold and silver, according to a report by DL Research. This shift marks a significant convergence between the traditional finance sector and cryptocurrency markets.
Historically, traditional finance and cryptocurrencies functioned as separate entities; however, recent trends show a blending of the two. Traditional stock exchanges are extending their trading hours, while cryptocurrency exchanges are incorporating features of traditional finance.
“Among traditional assets, commodities provide one of the clearest examples of this shift. The broader commodities market is valued at over $135 trillion and includes various resources. Most participants gain exposure through instruments like ETFs and futures rather than seeking physical delivery,” the report notes.
DL Research highlights a structural issue where macroeconomic events transpire continuously, yet traditional exchanges shut down for several hours each day. From 2020 to 2025, the S&P 500 ETF (SPY) yielded a +47% return during off-hours compared to +29% during regular hours, while the Nasdaq 100 ETF (QQQ) showed +53% versus +30%.
Tokenized Commodities See Significant Growth
The market capitalization for tokenized real-world assets (RWA) has surged from $4.3 billion to $22 billion over the past year, with tokenized exchange-traded commodities rising from $1.1 billion to $6.4 billion. Gold dominates this market, accounting for approximately 95% of tokenized commodities.
Tokens like XAUT ($3.7 billion) and PAXG ($2.4 billion) have seen substantial increases in holders, with XAUT holders growing from 3,000 to 30,000 and PAXG holders from 48,000 to 98,000. The volume of decentralized exchange trading for tokenized gold jumped from $1.4 billion to $8.4 billion, and PAXG transactions on decentralized exchanges increased from 5% to 20%.
Perpetual contracts on Binance have become essential for ongoing pricing of commodities, enabling trading without expiration dates and incorporating leverage and continuous funding rate adjustments. On March 6, trading volume for these contracts exceeded $130 billion, with 90 million trades recorded shortly after their introduction in January.
Gold constitutes between 25% and 65% of total trading volume for traditional futures on Binance, while silver often accounts for over 70% on certain days. In contrast, trading volumes for other metals and stocks are considerably lower.
DL Research asserts that this trading activity and global participation facilitate real-time price formation, eliminating the typical gaps found in traditional exchanges. In March, the New York Stock Exchange announced a partnership with RWA platform Securitize to develop infrastructure for 24/7 trading of tokenized assets, following the SEC's approval of Nasdaq's proposal for trading tokenized stocks.
