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The contracts are available for trading around the clock, are settled in USDC, and permit leverage of up to 10 times on single-stock contracts and 20 times on ETF products.
Crypto exchange Coinbase is introducing new offerings as part of its Everything Exchange initiative. (appshunter.io/Unsplash/Modified by CoinDesk)
What to know:
- Coinbase announced it is providing perpetual stock futures to non-U.S. traders, enabling them to assume leveraged positions in large-cap companies such as Apple, Microsoft, and Tesla, along with ETFs that mirror the S&P 500 and Nasdaq indices.
- The contracts are available for trading 24/7, are settled in USDC, and enable leverage of up to 10 times on single-stock contracts and 20 times on ETF products.
- This development is part of Coinbase’s strategy to establish itself as the “Everything Exchange,” which has prompted the expansion of its product range.
Coinbase (COIN) indicated that it has begun offering perpetual stock futures to qualified non-U.S. retail and institutional traders, thereby broadening its derivatives product portfolio into U.S. equities.
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The contracts permit traders to take leveraged positions on a selection of large-cap U.S. stocks, commonly referred to as the Magnificent 7: Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla. Additionally, perpetual futures linked to the SPY and QQQ exchange-traded funds, which track the S&P 500 and Nasdaq 100 indices, are offered in selected jurisdictions, as stated in a blog post from the exchange on Friday.
In contrast to traditional futures contracts, perpetual futures lack an expiration date. Coinbase’s contracts are settled in USDC, a stablecoin pegged to the dollar and issued by Circle Internet (CRCL).
According to Coinbase, traders can employ up to 10 times leverage on single-stock contracts and up to 20 times on ETF offerings. The demand for continuous equity exposure has been increasing significantly, with many available options predominantly found on decentralized platforms.
The largest of these decentralized platforms is Hyperliquid, which recently launched S&P 500 perpetual futures contracts. This platform has gained traction for contracts associated with conventional financial instruments, including oil-linked contracts that are traded continuously amid escalating tensions in the Middle East.
Coinbase also mentioned that the product utilizes the same risk engine that underpins its crypto derivatives markets, ensuring cross-margining between perpetual futures and spot positions.
This initiative coincides with the exchange’s efforts to broaden the asset variety accessible on its platform as part of its aim to become the “Everything Exchange.”
