Coinbase to Launch 24/7 Perpetual Futures Trading for Bitcoin, Ethereum in US

Coinbase has announced its intention to introduce 24/7 perpetual futures trading for Bitcoin and Ethereum in the United States. This initiative, facilitated through its regulated subsidiary, Coinbase Derivatives, LLC, represents a significant milestone as it marks the first time such offerings will be available domestically. The move is designed to align US derivatives markets with global crypto trading norms, where derivatives trading constitutes a substantial portion of overall trading volumes.

Coinbase Derivatives, which is regulated by the Commodity Futures Trading Commission (CFTC), will offer continuous Bitcoin and Ethereum futures contracts. These contracts will feature no expiration dates, replicating a popular global market structure within the US regulatory framework. This approach aims to address the inefficiencies associated with traditional US futures contracts, which require frequent renewal of positions at expiration. By providing perpetual-style futures, Coinbase seeks to offer traders the ability to maintain positions indefinitely, thereby streamlining long-term risk management strategies.

The launch will include various contract sizes to accommodate both institutional and retail traders, ensuring a broad range of strategic positions. Coinbase has emphasized the reliability of its infrastructure through a partnership with Nodal Clear, which will handle regulated clearing and compliance with CFTC guidelines. This collaboration is crucial for ensuring that the new offerings meet the necessary regulatory standards while providing functionality that mirrors offshore derivatives offerings.

Coinbase's introduction of perpetual futures comes at a time when the industry is seeing broader momentum toward regulated derivatives solutions within the US market. The exchange has indicated that it will roll out these new offerings within the coming weeks, further diversifying its US-centric initiatives. This move is part of a broader strategy to integrate tokenized securities into its offerings, as expressed by Coinbase CEO Brian Armstrong. The launch of 24/7 perpetual futures trading is expected to reduce reliance on international alternatives, providing US traders with a more seamless and regulated trading experience.