Coinbase Advanced Introduces Perpetual Futures for XRP, BTC, ETH, and LTC

Coinbase Expands Trading Services with Perpetual Futures

Coinbase, a leading cryptocurrency exchange, has introduced perpetual futures trading for eligible customers in select non-U.S. jurisdictions. This new feature is part of Coinbase Advanced, the platform aimed at experienced retail traders. Coinbase’s decision to offer perpetual futures comes as the crypto derivatives market accounts for 75% of total cryptocurrency trading volume worldwide.

Capitalizing on the Growing Popularity of Perpetual Futures

The introduction of perpetual futures is an effort to tap into their increasing prominence in the crypto trading landscape. These financial instruments provide traders with the flexibility to trade on margin, requiring less initial capital. Additionally, perpetual futures allow traders to go long or short, offering a risk management method for their crypto investments.

Initial Offering and Future Plans

Coinbase Advanced currently offers four perpetual contracts: XRP, BTC, ETH, and LTC. The leverage varies among these contracts, with up to 5X for BTC, ETH, and LTC, and up to 3X for XRP. Settlements are done in USDC, a trusted stablecoin. Coinbase plans to add more contracts in the coming months and is also developing mobile trading options. The platform currently offers a temporary low fee rate of 0% for makers and 0.03% for takers.

Rigorous Compliance Standards and Assurance

Coinbase assures traders that its new perpetual futures contracts meet strict compliance standards. The contracts are offered through Coinbase International Exchange and are overseen by the Bermuda Monetary Authority. The company emphasizes its security measures and transparent operations, including audited financial statements that confirm a 1:1 ratio of customer assets. Coinbase’s Insurance Fund and Liquidity Support Program, backed by USDC, provide additional capitalization for the futures exchange. Liquidity is provided by independent providers who have undergone compliance checks.

Accessibility and Eligibility

Coinbase has established a contact channel for institutional investors interested in these new trading options. However, access to perpetual futures is limited to non-U.S. customers who pass eligibility checks. Retail clients based in the United Kingdom are currently restricted from using this service.

Hot Take: Coinbase Expands Trading Options with Perpetual Futures

Coinbase’s introduction of perpetual futures trading is a strategic move to cater to experienced retail traders seeking more flexibility and risk management options in the crypto market. By capitalizing on the growing popularity of perpetual futures, Coinbase aims to capture a significant share of the crypto derivatives market. With its emphasis on compliance, security measures, and transparent operations, Coinbase provides assurance to traders looking for a reliable platform. As the company plans to add more contracts and develop mobile trading options, it is poised to attract more customers and solidify its position as a leading cryptocurrency exchange.