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Traditional exchanges are seeking to expand trading hours as 24/7 onchain trading gains momentum.
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Cboe Global Markets, one of the world’s largest derivatives and securities exchanges, has tipped plans to roll out 24-hour per day trading on weekdays, according to a Feb. 3 announcement.
The planned change “aims to meet growing global customer demand for expanded access to U.S. equities markets,” the exchange said. It comes as real-world asset (RWA) tokenization platforms increasingly offer a 24/7 alternative to traditional securities markets.
“We continue to hear from market participants globally – particularly those in Asia Pacific markets like Hong Kong, Japan, Korea, Singapore and Australia – that they want greater access to U.S. equities trading,” Oliver Sung, Cboe’s head of North American equities, said in a statement.
Sung said Cboe’s experience operating 24-hour exchanges in other markets means the exchange “can seamlessly support a 24×5 trading model for U.S. equities.” It plans to support 24-hour trading Monday through Friday, but not on weekends.
Cboe already offers nearly round-the-clock trading hours for certain derivatives, including S&P 500 Index options, and for its global forex markets.
RWAs offer 24/7 securities trading. Source: RWA.xyz
Related: 24X Exchange files amended application that could bring 24/7 trading to crypto ETFs
Demand for extended trading hours
Other traditional US equities exchanges are also seeking to deliver round-the-clock trading for clients. In August, 24X National Exchange filed an amended application to US regulators to launch a securities exchange that could potentially bring 24/7 trading to cryptocurrency exchange-traded funds (ETFs).
In the US, spot cryptocurrency exchanges such as Coinbase operate continuously, but securities exchanges — where crypto ETFs are traded — only handle trades between 9:30 am and 4:00 pm Eastern Time.
Meanwhile, RWAs — tokens representing claims on assets such as stocks, bonds or real estate — surged in popularity after US President Donald Trump’s November election win ushered in a friendlier regulatory environment for cryptocurrencies.
Decentralized exchanges (DEXs) on blockchain networks enable 24/7 trading of RWA tokens
On Feb. 3, RWAs reached a cumulative all-time high of more than $17.1 billion across over 82,000 total asset holders, excluding the value of stablecoins, according to data from RWA.xyz.
RWAs could grow more than 50-fold by 2030, according to a Tren Financial report, which compiled predictions from financial institutions and consulting firms. They represent a $30-trillion market opportunity globally, Colin Butler, Polygon’s global head of institutional capital, told Cointelegraph in an interview.
The most popular RWA funds are the tokenized money market funds Hashnote Short Duration Yield Coin (USDY), BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX). Tokenized money market funds collectively command more than $3 billion as of Feb. 3, according to RWA.xyz.
On Jan. 30, private equity firm Apollo Global Management said it had partnered with Securitize to launch a tokenized private credit fund.
Magazine: AI may already use more power than Bitcoin — and it threatens Bitcoin mining
This article first appeared at Cointelegraph.com News
