tl;dr
On July 21, Coinbase launched US-based perpetual futures contracts, including nano Bitcoin and nano Ether Perpetual Futures, offering no monthly expirations, up to 10x margin, and low taker fees. These contracts comply with US regulations and are accessed via Coinbase Financial Markets. The move fol...
On July 21, Coinbase launched its US offering of perpetual futures contracts, introducing “nano Bitcoin Perpetual Futures” and “nano Ether Perpetual Futures (ETH-PERP).” These contracts feature no monthly expirations, up to 10x margin, and taker fees as low as 0.02%. Traders access these instruments through Coinbase Financial Markets, the exchange’s registered futures commission merchant and designated contract market, ensuring compliance with US margin and clearing regulations.
The perpetual futures replicate the offshore cash-settled contracts that roll indefinitely, but with adherence to US regulatory standards. Max Branzburg, head of consumer and business products, highlighted that derivatives currently account for about 75% of global crypto trading volume. He also noted that Coinbase International Exchange processed $5 billion in retail perpetual volume in May alone, emphasizing the company’s intention to prevent crypto derivatives trading from being predominantly an offshore phenomenon.
This strategic move coincides with Coinbase’s recent $2.9 billion acquisition of Deribit, one of the largest crypto derivatives platforms. Perpetual futures attract sophisticated traders who aim to hedge spot exposures or arbitrage funding spreads, offering higher leverage possibilities than spot trading. According to Coinglass data, Bitcoin’s perpetual futures market dwarfs its spot market, with a nearly 10x larger monthly trading volume as of July 20.
Coinbase sets a conservative maximum leverage of 10x for its perpetual contracts, compared to 20x to 50x commonly offered on offshore platforms. The exchange aims to compete with dominant non-US venues such as Binance, OKX, and Bybit by emphasizing regulatory compliance and custody segregation, targeting professional and high-net-worth traders who previously dealt through offshore exchanges.
Looking ahead, Coinbase plans to expand its contract offerings based on market demand while maintaining leverage limits to safeguard market integrity. This approach underscores Coinbase’s commitment to bringing powerful, regulated crypto derivatives products to US-based traders.