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Markets Never Sleep: Crypto's 24/7 Model Beckons Wall Street
12 Oct
Summary
- US equity trading may extend towards a 235 model.
- Crypto trading volume surged outside traditional US hours.
- Always-on markets require continuous banking and settlement infrastructure.
Traditional US equity markets are evolving towards a 235 trading model, responding to investor demand for continuous access to assets. This mirrors the 24/7 nature of cryptocurrency markets, which have long operated across time zones without closing. While US equities still see most volume during regular sessions, crypto platforms like Binance observe substantial activity outside these hours, driven by a global user base not tethered to New York time.
The transition to an 'always-on' market involves more than just extended trading hours. It necessitates continuous operation of crucial financial infrastructure, including banking, clearing, and settlement. Crypto markets, supported by stablecoins, are better positioned for this due to their independence from traditional banking schedules. This continuous settlement capability is a key differentiator.
Binance, for instance, has seen a significant rise in trading volume for traditional-market-linked perpetuals, with a substantial portion of its user base originating from emerging markets. These users participate from various time zones, contributing to liquidity outside traditional US market hours. This global participation shapes a different trading rhythm.
Crypto-native traditional finance products on platforms like Binance can react to market events like corporate earnings or economic news that occur after traditional markets close. This allows prices to adjust more dynamically. While traditional exchanges still lead price discovery during their operating hours, crypto platforms can contribute significantly when those markets are dormant, bridging the gap until reopening.
