Coinbase Launches Perpetual Futures Trading for Non-US Customers on Coinbase Advanced
Coinbase has announced the introduction of perpetual futures trading for its non-US customers on Coinbase Advanced, a platform designed for sophisticated retail traders. Perpetual futures contracts allow traders to speculate on the price movements of crypto assets without any expiration date. Non-US customers in eligible jurisdictions can now trade four perpetual contracts: bitcoin (BTC), ether (ETH), litecoin (LTC), and XRP, settled in USDC, a stablecoin backed by US dollars.
The launch of perpetual futures by Coinbase comes at a time when there is a significant surge in the global crypto derivatives market. According to CoinGecko’s report, crypto derivatives accounted for 75% of the total crypto trading volume in March 2023, amounting to $2.95 trillion.
Coinbase emphasizes that their perpetual futures offer several advantages to traders, including increased capital efficiency, easier access to the crypto market with limited upfront investment, and enhanced risk management for underlying crypto assets. To access Coinbase Advanced and create a trading account, customers must pass standard assessment checks to determine their eligibility.
A Regulated and Compliant Platform
Coinbase has obtained regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures to non-US customers. The BMA is known for its robust framework in supervising crypto businesses. In May 2023, Coinbase Exchange received a class F license from the BMA, allowing it to provide perpetual futures to non-US institutions. Coinbase assures that its perpetual futures products are built within rigorous compliance standards and aims to expand derivative access through Coinbase Advanced.
Hot Take: Meeting the Growing Demand for Crypto Derivatives
As the demand for crypto derivatives continues to grow, Coinbase’s launch of perpetual futures on Coinbase Advanced caters to this trend. With an increasing number of traders looking to engage in speculative trading, perpetual futures offer an opportunity to capitalize on price movements without the constraints of expiration dates. Coinbase’s move also aligns with the dominance of crypto derivatives in the overall trading volume, emphasizing the importance of offering these products to meet market demand.
By providing a regulated and compliant platform for perpetual futures trading, Coinbase ensures that customers can trade with confidence and transparency. With its low fee rate promotion and plans for mobile trading options, Coinbase Advanced aims to serve a wider range of global customers and establish itself as a leading platform for sophisticated retail traders.
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