OKX Australia launches perps for pre-IPO opportunities

OKX Australia has launched a perpetual contract, also known as perps, to provide exposure of private companies before they undergo a potential initial public offering (IPO).

The Pre-IPO Perpetual Futures allow investors to take long or short positions on the implied valuation of private companies, with up to 10x leverage and trading available. It also expands the range of global markets available to Australian investors through its platform.

Following an eligible company's public listing, its pre-IPO perp will transition into a standard futures contract, providing continuity for traders.

Importantly, investors do not acquire ownership of underlying private equity, voting rights, dividends, or IPO allocations at any time, as perps are derivative contracts and do not represent shares or ownership in the underlying company.

Initial contract availability includes exposure referencing OpenAI, Anthropic, and Moonshot.

OKX Australia chief executive Shane Chandra said the new offering provides an alternative avenue to capitalise in a previously inaccessible environment.

"Historically, even where there is a great deal of interest, there have been limited ways for investors to express a view on valuations before an IPO. Traditional methods were available exclusively to a small segment of high-net-worth investors," Chandra said.

"Pre-IPO perps change that. Eligible wholesale clients can take a long position if they believe a company is undervalued or go short if they think expectations have moved too far.

"It can also function as a powerful tool for investors who have a fixed allocation, who would like to hedge or increase exposure. Since our product trades around the clock, investors always have options to manage their exposure."

He also noted the company plans to expand its pre-IPO suite over time, and the launch reflects OKX Australia's broader strategy to expand the range of sophisticated trading products in Australia.

"Australia now has strong regulatory clarity around digital assets, creating an environment where global platforms can bring new products to market within a well-established financial regulatory regime," Chandra said.

"Our focus is on combining OKX's global technology, liquidity and product capabilities with a strong local regulatory foundation. Pre-IPO perps are another example of how we can give sophisticated Australian investors access to markets and products that historically have been difficult to reach."

Thie product is offered under OKX's Australian financial services licence (AFSL).

It comes as ASIC's sector-wide no-action period for digital asset-related financial product and service providers ended on September 30, meaning firms that need a licence to operate but have not yet met the condition will now face civil and criminal penalties for breaching financial services law.

This includes potential fines reaching up to 10% of annual turnover, the regulator said.

ASIC is also keeping a close eye on the product, noting that it is "aware of speculative, high-risk derivatives known as perpetual futures, or perps, being offered to Australian retail investors."

Coinbase recently began offering perps to local wholesale investors, with three different options ranging from cryptocurrency, equity, and commodity assets.

The firm said the domestic crypto market is maturing, and investors are constantly on the lookout for alternative investment methodologies other than 'spot buying', stating the launch will provide locally licenced perpetual trading capabilities for crypto, equity and commodity assets.