Coinbase Futures announced on July 21st that it will launch a new permanent futures-like product in the US. The agreement, known as “US Permanent Futures,” is intended to provide a local, US-regulated alternative to permanent futures products commonly used on offshore exchanges.
“We look forward to offering these products in Coinbase futures. This is designed to reflect how global permanent futures work, but is fully compliant with US regulations. Internationally, persistent futures represent 90% of cryptocurrency trading volume in several reports,” Coinbase said in a statement.
The first phase of the offering includes permanent style futures contracts of nanobitcoin (0.01 BTC) and nanoethers (0.10 ETH). These contracts have a 5-year maturity, are tradeable 24/7, and include a funding rate mechanism to ensure they remain in line with spot market prices. Funds are processed hourly and collected twice a day during the specified cash adjustment period.
Coinbase said the move addresses issues of perpetual trading regulations, custody and counterparty risk that many US investors currently access via offshore platforms. The new products aim to eliminate these risks by providing the ability to trade in a regulated environment within the US
Coinbase also said these futures provide “regulated access to crypto markets with flexible position sizes and high capital efficiency.” More information on access to the product will be shared prior to launch.
“We are extremely proud to bring lasting style of futures to the US market. This move marks the beginning of a new era of access, efficiency and innovation in the US market,” the company said.
*This is not investment advice.
