U.S. customers can start trading CFTC-regulated perpetual futures on Coinbase
Coinbase has just launched CFTC-compliant perpetual-style futures trading in the U.S. with nano Bitcoin (BTC) and Ethereum (ETH) contracts being offered up first.
The contracts will reportedly offer 24/7 trading, up to 10x leverage, no quarterly expiration, and fees as low as 0.02%, marking a significant step for regulated crypto derivatives in the U.S.
Coinbase introduced 24/7 standard futures trading
As things stand, derivatives make up over 75% of total crypto trading volume globally. However, for a long time, traders based in America had to put up with limited access due to fixed market hours and contract expiration policies.
Coinbase ended that era with the introduction of 24/7 standard futures trading, which it launched in May, expanding on its earlier BTC and ETH offerings to cover SOL, XRP, and ADA.
These contracts are USD-settled, with XRP futures representing 10,000 XRP per contract and nano SOL contracts recording strong trading volume at over 23,000 contracts daily.
It has now followed that action up by enabling CFTC-compliant perpetual-style futures trading, which differ from the current offshore perpetuals that dominate global crypto derivatives markets but are not approved in the U.S.
These new instruments are reportedly structured as long-dated futures with five-year expirations. They also boast a funding rate mechanism that accrues hourly and is settled twice daily, similar to the price dynamics of perpetual swaps.
For now, Coinbase CEO Brian Armstrong says perpetual-style futures trading is only available for Bitcoin and Ethereum, potentially hinting at products suitable for other coins like SOL and XRP in the future.
US financial institutions are launching their own crypto services
Coinbase’s decision to expand its offerings to include perpetual-style futures trading is coming at a crucial time as the markets are bolstered by hopes of lighter regulation and a renewed risk appetite, pushing exchanges to capitalize on the frenzy by deploying complex products.
In May, reports revealed that two of Wall Street’s giants, Morgan Stanley and Charles Schwab, are getting ready to offer their clients access to crypto trading.
Morgan Stanley reportedly plans to enable spot crypto trading on its E*Trade platform by 2026. To support this integration, the firm is exploring partnerships with crypto-native companies.
The company already offers crypto ETF exposure to its high-net-worth clients. However, with this development, it will expand access to a broader base of retail investors.
Charles Schwab is no different. The firm’s CEO, Rick Wurster’s during one of its earnings calls, suggested that the financial powerhouse is also working toward enabling direct spot crypto trading for its users.
He said: “We’re confident we will be a great destination for investors interested in crypto. Our expectation is that with the changing regulatory environment, we are hopeful and likely to be able to launch direct spot crypto and our goal is to do that in the next 12 months and we’re on a great path to be able to do that.”
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
Read More
U.S. customers can start trading CFTC-regulated perpetual futures on Coinbase
Coinbase has just launched CFTC-compliant perpetual-style futures trading in the U.S. with nano Bitcoin (BTC) and Ethereum (ETH) contracts being offered up first.
The contracts will reportedly offer 24/7 trading, up to 10x leverage, no quarterly expiration, and fees as low as 0.02%, marking a significant step for regulated crypto derivatives in the U.S.
Coinbase introduced 24/7 standard futures trading
As things stand, derivatives make up over 75% of total crypto trading volume globally. However, for a long time, traders based in America had to put up with limited access due to fixed market hours and contract expiration policies.
Coinbase ended that era with the introduction of 24/7 standard futures trading, which it launched in May, expanding on its earlier BTC and ETH offerings to cover SOL, XRP, and ADA.
These contracts are USD-settled, with XRP futures representing 10,000 XRP per contract and nano SOL contracts recording strong trading volume at over 23,000 contracts daily.
It has now followed that action up by enabling CFTC-compliant perpetual-style futures trading, which differ from the current offshore perpetuals that dominate global crypto derivatives markets but are not approved in the U.S.
These new instruments are reportedly structured as long-dated futures with five-year expirations. They also boast a funding rate mechanism that accrues hourly and is settled twice daily, similar to the price dynamics of perpetual swaps.
For now, Coinbase CEO Brian Armstrong says perpetual-style futures trading is only available for Bitcoin and Ethereum, potentially hinting at products suitable for other coins like SOL and XRP in the future.
US financial institutions are launching their own crypto services
Coinbase’s decision to expand its offerings to include perpetual-style futures trading is coming at a crucial time as the markets are bolstered by hopes of lighter regulation and a renewed risk appetite, pushing exchanges to capitalize on the frenzy by deploying complex products.
In May, reports revealed that two of Wall Street’s giants, Morgan Stanley and Charles Schwab, are getting ready to offer their clients access to crypto trading.
Morgan Stanley reportedly plans to enable spot crypto trading on its E*Trade platform by 2026. To support this integration, the firm is exploring partnerships with crypto-native companies.
The company already offers crypto ETF exposure to its high-net-worth clients. However, with this development, it will expand access to a broader base of retail investors.
Charles Schwab is no different. The firm’s CEO, Rick Wurster’s during one of its earnings calls, suggested that the financial powerhouse is also working toward enabling direct spot crypto trading for its users.
He said: “We’re confident we will be a great destination for investors interested in crypto. Our expectation is that with the changing regulatory environment, we are hopeful and likely to be able to launch direct spot crypto and our goal is to do that in the next 12 months and we’re on a great path to be able to do that.”
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
Read More