Binance to list Korea equity-tracking 'EWY' perpetual futures…up to 10x leverage

Global crypto exchange Binance is set to launch a derivatives product whose underlying asset is an exchange-traded fund (ETF) that tracks South Korea’s stock market. The move opens a route for investors in the crypto market to gain Korea equity exposure around the clock, year-round.

On the 12th (local time), Binance said in an official notice that it will list the 'EWYUSDT' index perpetual futures contract, margined in Tether (USDT), at 10:30 p.m. on the 16th (Korea time).

The underlying asset tracked by the product is the iShares MSCI Korea ETF (EWY), listed on NYSE Arca in the US. The ETF is a flagship global product that tracks a free-float market-cap-weighted index of South Korea’s large- and mid-cap equities.

Tether (USDT), a stablecoin, will be used as the settlement asset for the perpetual futures contract to be listed. Investors can start trading from a minimum of 0.01 EWY (minimum notional value of 5 USDT), and the tick size is set at 0.01. A key feature is the ability to take directional bets and use leverage of up to 10x.

Detailed mechanisms have also been put in place to maintain system stability. Funding rates designed to balance long (buy) and short (sell) positions will be subject to a cap and floor, fluctuating only between a maximum of 2.00% and a minimum of -2.00%, with funding settled every eight hours. The base interest rate for the funding rate is 0%.

To improve convenience for investors, Binance will also support Multi-Assets Mode, allowing various crypto assets in addition to Tether to be used as collateral, and—unlike traditional stock markets—trading will be available 24/7.

Binance said it added the index product to broaden futures trading options and enhance the user experience. The crypto industry views the listing as evidence that global exchanges’ expansion—pulling traditional financial assets such as stocks into the crypto derivatives market—is now extending to South Korea’s equity market as well.