Coinbase Launches Regulated Crypto Futures in US on July 21

Coinbase, a prominent cryptocurrency exchange, has announced the launch of regulated perpetual-style crypto futures in the US market, set to go live on July 21. This new offering includes two contracts: nano Bitcoin Perpetual-Style Futures and nano Ether Perpetual-Style Futures. These contracts are designed to provide US traders with a domestic, regulated alternative to offshore workarounds, offering the same trading perks as global perpetual futures but under US regulatory oversight.

The new futures contracts will trade 24/7 and include a funding rate mechanism that keeps the futures prices synced with the spot market. Funding builds up every hour and settles twice per day, with the collected funding either credited or debited to the trader’s account based on their position. This mechanism aims to offer the feel of spot trading while still providing access to leverage, capital-efficient trading, and regulated clearing. The contracts are built with five-year expirations and are small in size, allowing traders to size their positions with more precision.

Coinbase's move to launch these futures contracts is significant as it eliminates the need for US traders to go offshore to trade perpetual futures. This not only removes the extra baggage of custody concerns, regulation issues, and counterparty risk but also provides a legal, domestic alternative. The launch of these contracts is expected to deepen Coinbase's footprint in derivatives trading and offer traders a more convenient and secure way to engage in crypto futures trading.

The launch of these futures contracts is part of Coinbase's broader strategy to expand its offerings and attract more traders to its platform. By providing a regulated and domestic alternative to offshore workarounds, Coinbase is positioning itself as a leader in the US crypto derivatives market. This move is expected to attract more traders to the platform and further solidify Coinbase's position as a leading cryptocurrency exchange.

Coinbase CEO Brian Armstrong reinforced the development on social media platform X, stating: "You asked for it, we built it. Perpetual-style crypto futures are coming to the US on July 21. Starting with BTC and ETH. No quarterly expiration, available 24/7, with spot price tracking. Fully CFTC compliant."

Although initially targeted at institutional users, Coinbase indicated that retail expansion will follow. “We are excited to continue our expansion of these products to retail users in the coming months,” the company revealed. “We’re incredibly proud to bring perpetual-style futures to the US – a transformative milestone that will represent the beginning of a new era in US market access, efficiency, and innovation,” the firm concluded.