Coinbase Launches Perpetual Futures in US with 10x Leverage

Coinbase has launched its perpetual futures contracts in the US, marking a significant move in the crypto derivatives market. The exchange introduced "nano Bitcoin Perpetual Futures" and "nano Ether Perpetual Futures (ETH-PERP)" on July 21, offering traders a new avenue for leveraged trading. These contracts are regulated by the Commodity Futures Trading Commission (CFTC) and are accessible through Coinbase Financial Markets, the exchange’s registered futures commission merchant and designated contract market.

The new offerings are designed to mimic offshore perpetuals, which are cash-settled contracts that roll indefinitely. However, they comply with US margin and clearing requirements, providing a regulated environment for US traders. The contracts come with a maximum leverage of 10x and charge taker fees as low as 0.02%, making them competitive in the market.

Max Branzburg, head of consumer and business products at Coinbase, highlighted the importance of this move, noting that derivatives account for approximately 75% of global crypto turnover. He emphasized that bringing these instruments to the US market gives domestic customers access to powerful crypto trading products on a safe exchange. This initiative follows the exchange's $2.9 billion acquisition of Deribit, one of the largest crypto derivatives venues, nearly two months prior.

Perpetual futures are particularly appealing to sophisticated traders who seek to hedge spot exposure, arbitrage funding spreads, or achieve higher notional leverage than spot borrowing permits. The perpetual market represents a significant portion of crypto trading, with Bitcoin’s perpetual market reaching nearly $313 billion in July, almost 10 times larger than its spot volume. Coinbase's maximum leverage of 10x is lower than the 20x to 50x ratios common on most offshore platforms, reflecting a cautious approach to market integrity.

Coinbase aims to compete with major non-US venues such as Binance, OKX, and Bybit, which dominate crypto futures activity. By offering regulatory clarity and custody segregation, Coinbase seeks to attract prop trading firms and high-net-worth individuals who previously routed orders abroad. Branzburg indicated that the firm will expand contract listings based on demand but plans to maintain the leverage cap to preserve market integrity.