TechFlow news, November 28 — According to a blog post by Arthur Hayes, co-founder of BitMEX, he detailed the development history of perpetual contracts and predicted they will completely transform the landscape of traditional financial derivatives trading.
Hayes stated that perpetual contracts solve two core issues—leverage and liquidity—making them the ideal product for retail traders. Traditional financial exchanges, constrained by clearinghouse-guaranteed settlement models, cannot offer high leverage to retail users, whereas cryptocurrency exchanges can provide up to 100x leverage through a socialized loss margin system.
Hayes predicts that by the end of 2026, all decentralized and centralized exchanges will offer stock perpetual contracts, which will entirely disrupt the stock derivatives market. As the U.S. regulatory environment shifts toward supporting cryptocurrencies, traditional exchanges face an "adapt or die" choice and must adjust their product structures to compete with crypto exchanges.
