Coinbase set to launch regulated 24/7 perpetual crypto futures in US

Coinbase announced plans Monday to introduce 24/7 perpetual futures trading for Bitcoin and Ethereum in the US through its regulated Coinbase Derivatives exchange, marking the first time such offerings will be available domestically.

Coinbase Derivatives, LLC, a Commodity Futures Trading Commission (CFTC)-regulated futures exchange, confirmed it will launch continuous Bitcoin and Ethereum futures contracts, aligning US derivatives markets with global crypto trading norms.

Derivatives trading constitutes approximately 75% of global crypto trading volumes, yet a substantial portion of these transactions occur outside US jurisdictions. By providing perpetual-style futures contracts with no expiration dates, Coinbase seeks to replicate a popular global market structure within US regulatory frameworks, according to the company’s official announcement.

The launch will include various contract sizes, accommodating both institutional and retail traders and facilitating a range of strategic positions. Coinbase emphasized infrastructure reliability through a partnership with Nodal Clear, ensuring regulated clearing and compliance with the Commodity Futures Trading Commission’s guidelines.

Traditional US futures contracts carry inherent time constraints, requiring traders to frequently renew positions at expiration which creates inefficiencies. Coinbase’s perpetual-style futures, featuring long-dated expirations, aims to address this limitation. Traders will gain the cabe ablen positions indefinitely, streamlining long-term risk management strategies in alignment with practices established in international markets.

Per Coinbase’s announcement, ongoing collaboration with the CFTC and market participants seeks to fine-tune these perpetual-style contracts, ensuring compliance while preserving functionality that mirrors offshore derivatives offerings. The exchange emphasized the strategic significance of bringing such a product to the US, highlighting the potential reduction in reliance on international alternatives.

Coinbase’s introduction of perpetual futures comes amid broader industry momentum toward regulated derivatives solutions within the US market. Last week, Coinbase CEO Brian Armstrong expressed optimism about integrating tokenized securities into its offerings, signaling broader diversification of the exchange’s US-centric initiatives.

The exchange indicated rollout plans within the coming weeks.

The post Coinbase set to launch regulated 24/7 perpetual crypto futures in US appeared first on CryptoSlate.

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