Summary Points
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Launch of Regulated Futures: Coinbase has introduced CFTC-regulated perpetual futures for U.S. traders on its Coinbase Financial Markets platform, enabling retail access to these derivatives for the first time.
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Product Features: The initial offerings, including nano Bitcoin and nano Ether perpetual futures, allow lower capital exposure and support up to 10x intraday leverage with low trading fees.
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Competitive Landscape: The introduction comes as Kraken also enters the U.S. derivatives market, showcasing increasing competition among exchanges offering regulated crypto futures.
- Expansion Plans: Kraken’s recent acquisition of NinjaTrader enhances its market presence, with plans to broaden its futures service across more U.S. states later this year.
Coinbase Launches CFTC-Regulated Perpetual Futures for U.S. Traders
Coinbase has taken a significant step by launching CFTC-regulated perpetual futures for U.S. traders. This development marks a first for American retail investors, allowing them access to these derivatives in a fully regulated environment.
As of Monday, Coinbase Financial Markets (CFM) became part of a growing list of exchanges offering regulated derivatives in the U.S. “Bringing the power and efficiency of perpetual futures to a regulated American market… Huge step forward for U.S. crypto traders,” the company stated on July 21 via X.
Perpetual futures represent about 90% of the global crypto derivatives market. Until now, U.S. traders faced challenges due to complex regulations.
The initial offering includes nano Bitcoin (BTC-PERP) and nano Ether (ETH-PERP) perpetual futures. These contracts allow traders to engage with cryptocurrency at lower costs. Each contract represents a fractional amount of the underlying asset and supports up to 10x intraday leverage with low trading fees of 0.02%. Moreover, these perpetual contracts boast five-year durations, enabling traders to hold positions longer without monthly rollovers.
In addition to crypto futures, CFM also offers up to 20x intraday leverage on metals like gold and silver. This diverse range of products provides U.S. users with valuable trading options.
Coinbase has also revamped its platform by rebranding its wallet to the Base app. This new platform integrates crypto features with social elements and is powered by Ethereum’s Layer 2 network, Base.
The competitive landscape is heating up. Kraken also recently entered the U.S. derivatives market, offering its CFTC-regulated futures through the Kraken Pro platform. This service, currently available in selected states, enables leveraged trading and compliant hedging.
By expanding their offerings, both Coinbase and Kraken aim to fulfill the growing demand for regulated trading options. This development not only enhances the user experience but also fosters trust and security within the rapidly evolving fintech landscape.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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