Coinbase Derivatives has announced plans to introduce a new line of perpetual cryptocurrency futures contracts, slated for launch on July 21, 2025. This initiative aims to provide U.S. traders with a regulated alternative to similar tools currently available only through offshore platforms.
Key Features of the New Product
- Nanoscale Contracts: Initial offerings will include Bitcoin (0.01 BTC) and Ethereum (0.10 ETH)-based instruments, designed to deliver capital-efficient digital asset exposure.
- Five-Year Expiry: These long-term futures contracts will track spot market prices via a funding mechanism, with 24/7 trading availability.
- Regulated Framework: Operating under the oversight of the Commodity Futures Trading Commission (CFTC), the contracts address concerns about custody, compliance, and counterparty risks associated with offshore platforms.
Why This Matters
Globally, perpetual contracts dominate crypto trading, accounting for up to 90% of volume in some markets. However, U.S. traders face limited access due to regulatory constraints, often pushing them toward riskier offshore options.
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How the Product Works
- Funding Rate Model: Rates accrue hourly and settle twice daily, mimicking spot market trading while enabling leverage and risk management.
- Strategic Benefits: Supports long-term positions and improves capital efficiency without relying on unregulated alternatives.
Future Plans
Coinbase will release details on accessing these contracts via partner platforms closer to the launch date. Expansion to retail users is also planned.
FAQ Section
Q: What are perpetual futures contracts?
A: They are derivatives with no expiry date, using a funding mechanism to align with spot prices, popular in crypto markets for their flexibility.
Q: How does CFTC regulation benefit traders?
A: It ensures transparency, reduces counterparty risk, and enforces compliance with U.S. financial standards.
Q: When will retail traders gain access?
A: Coinbase has indicated retail availability will follow the institutional launch, though no specific timeline is confirmed.