Coinbase (NASDAQ:COIN) Advanced has introduced non-expiring perpetual futures contracts on Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP, targeting the international crypto derivatives market, which accounts for 75% of global cryptocurrency trading volume. This new offering is available to its customers outside the US and UK, as of Thursday.
The contracts are settled in USDC, a stablecoin pegged to the dollar, allowing traders to make indefinite leveraged bets on the price movements of digital currencies. The leverage offered is up to 5x for BTC, ETH, and LTC, while XRP offers 3x leverage.
In an effort to provide a comprehensive trading platform for global retail customers, Coinbase Advanced has integrated features such as highly liquid spot markets, futures trading, advanced order types, TradingView charts, and trading APIs within a unified interface. The platform hosts over 3,000 cryptocurrencies and more than 150 trading pairs.
To encourage participation, Coinbase has set an introductory maker fee of 0% and a taker fee of 0.03%. Security and compliance are emphasized with a policy of maintaining a 1:1 customer assets ratio. The futures exchange is backed by an insurance fund and liquidity support program funded by USDC.
Future enhancements to Coinbase Advanced include the addition of more contracts and mobile trading capabilities. Expansion plans are in progress to better cater to advanced retail traders worldwide.
Linda P. Jones, a former Morgan Stanley (NYSE:MS) executive, shared an analysis on social media platform X highlighting the bullish market sentiment for XRP. She noted its appeal to institutional investors such as hedge funds and speculated on potential participating jurisdictions that could include regions known for hosting hedge funds and offshore investment entities.
Coinbase Advanced's perpetual futures launch falls under the regulation of the Bermuda Monetary Authority. The company assures traders that it only features trusted players in the crypto derivatives market on its platform.
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