What does on-chain settlement of perpetual contracts mean? Institutions are promoting on-chain ecosystems that are reshaping the market competition landscape.

As the participation of major international financial institutions deepens, derivatives trading within the blockchain ecosystem is undergoing a revolution. When perpetual contracts’ trading, margin management, and settlement are all completed on-chain, what does this signify? The answer is: the fundamental logic of market competition is being rewritten.

On-Chain Margin and Ecosystem Upgrades

In traditional trading models, margins are held by centralized exchanges, and settlement relies on the independent systems of various institutions. But when leading organizations like CBOE and CME begin supporting on-chain margin and on-chain settlement solutions, the entire trading process becomes transparent, verifiable, and trustless. What does this mean for the perpetual market? It means greater security for user assets and higher trading efficiency.

Major Changes in Market Structure

The rapid improvement of the on-chain ecosystem is breaking the monopoly of traditional centralized exchanges. Platforms that can proactively adopt on-chain perpetual settlement will gain significant competitive advantages. We see emerging decentralized trading protocols engaging in a new round of competition with traditional exchanges. This adjustment in market competition not only expands traders’ options but also forces the entire industry to accelerate innovation.

Future Market Trends

As perpetual trading gradually becomes fully on-chain, market liquidity, risk control mechanisms, and user experience will all open up new possibilities. It is foreseeable that the future on-chain derivatives market will feature diversified competition, which also means users will have access to more high-quality options.