On July 21, the exchange opened its first perpetual futures, on nano Bitcoin and nano Ether, and they are based in the U.S. The instruments do not have expirations, the leverage goes up to 10x, and the lowest taker fee is 0.02%. The products are offered on Coinbase Financial Markets a regulated financial institution by the CFTC, a major change in cryptocurrency derivatives in the United States.
The Offshore Giants Competition
Coinbase is launching a product that is an equivalent of offshore perpetuals yet it is in line with U.S. margin and clearing regulations. Whereas its competitors such as. Binance and Bybit provide leverage of 20x-50x. Coinbase limits it to 10x in order to focus on stability. The acquisition comes after it bought Deribit, a crypto derivatives marketplace. The deal consisted of $2.9B, to take the trading of crypto derivatives products to home by its executives.
The Key Trading Instruments are Perpetuals Dominant
Nowadays, the majority of crypto trading activity involves perpetual futures. According to coinglass, Bitcoin perpetuals now trade at a high of 313B monthly volume. Furthermore, 32.2B in terms of spot cryptocurrency. Coinbase targets institutional traders and wealthy clients that are regulated. Furthermore, that have custody protection, which was unheard of in the U.S.
Future Development Strategically
Coinbase will expand its futures product offering on need-to-need basis. With a leverage cap to make sure that there is consistency in the market. Having nearly three-quarters of the worldwide crypto turnover covered by derivatives, Coinbase proposes organized U. S-based choices in an area that traditionally approached offshore exchanges.
