Coinbase Extends Perpetual Futures Trading to non-US Customers
Coinbase, a leading cryptocurrency exchange, has taken a significant step by introducing perpetual futures trading to its non-US customer base. This expansion is part of Coinbase Advanced, a platform tailored for sophisticated retail traders. Perpetual futures contracts are financial instruments that enable traders to speculate on the price movements of cryptocurrencies without the constraints of an expiration date.
A Range of Tradable Contracts
Effective immediately, eligible Coinbase Advanced users in non-US jurisdictions can access four perpetual contracts. These contracts cover popular cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP. Importantly, these contracts are settled in USDC, a stablecoin pegged to the US dollar.
Enhanced Leverage and Fees
Coinbase Advanced users can now employ leverage of up to 5X, with the exception of XRP, which offers leverage of 3X. Mobile trading options are also in the pipeline, further expanding accessibility. As part of a promotional launch offer, customers can avail of a competitive fee rate, with maker fees set at 0% and taker fees at 0.03%.
A Platform Committed to Regulatory Compliance
Coinbase’s introduction of perpetual futures for non-US customers comes with the backing of regulatory approval from the Bermuda Monetary Authority (BMA). The BMA is renowned for its robust regulatory framework in overseeing digital assets and crypto-related businesses. Coinbase had already secured a class F license from the BMA in May 2023, allowing the exchange to offer perpetual futures to non-US institutions. The company emphasizes its commitment to maintaining rigorous compliance standards in the development of its perpetual futures products.
Meeting the Growing Demand for Crypto Derivatives
The launch of perpetual futures by Coinbase aligns with the remarkable growth of the global crypto derivatives market. A report from CoinGecko highlighted that crypto derivatives accounted for a substantial 75% of the total crypto trading volume, amounting to $2.95 trillion in March 2023.
Coinbase positions its perpetual futures as a valuable addition to traders, offering benefits such as enhanced capital efficiency, increased accessibility to the crypto market, even with limited upfront investments, and improved risk management for underlying crypto assets. This strategic move aims to meet the rising demand for cryptocurrency derivatives while ensuring regulatory compliance and expanding its global customer base.