Coinbase Futures announced that it will launch a new perpetual futures-like product in the U.S. on July 21. Dubbed “US Perpetual-Like Futures,” the contracts aim to provide a local, U.S.-regulated alternative to perpetual futures products commonly used on offshore exchanges.
“We are excited to offer these products on Coinbase Futures, designed to mirror how global perpetual futures work, yet remain fully compliant with U.S. regulations. Internationally, perpetual futures represent 90% of cryptocurrency trading volume by some reports,” Coinbase said in a statement.
The first phase of the offering includes perpetual-style futures contracts for nano Bitcoin (0.01 BTC) and nano Ether (0.10 ETH). These contracts will have a five-year maturity, will be tradable 24/7, and will include a funding rate mechanism to ensure they remain in line with spot market prices. Funding will be processed hourly and collected during designated cash adjustment periods twice a day.
Coinbase says the move will address regulatory, custody and counterparty risk issues with perpetual trading, which many U.S. investors currently access through offshore platforms. The new products aim to eliminate those risks by offering the ability to trade in a regulated environment within the U.S.
Coinbase also noted that these futures will provide “regulated access to the crypto market with flexible position sizes and high capital efficiency.” More information on access to the products is expected to be shared ahead of launch.
“We are very proud to bring perpetual-style futures to the U.S. market. This move represents the beginning of a new era of access, efficiency and innovation in the U.S. market,” the company said.
*This is not investment advice.
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