Cryptocurrency exchange Coinbase has made a groundbreaking move by launching 24/7 trading for Bitcoin and Ethereum futures contracts. This move, which allows uninterrupted access to crypto futures contracts, makes Coinbase the first CFTC-regulated exchange in the United States to offer round-the-clock trading.
The futures contracts offered by Coinbase Derivatives LLC (CDE) are cleared through Nodal Clear and have been launched in partnership with top financial firms, including Virtu Financial, ABN AMRO, and Wedbush. This launch follows Coinbase’s recent $2.9 billion acquisition of Deribit, indicating the exchange’s strong push to introduce U.S.-regulated perpetual futures domestically and globally.
With this new development, U.S. traders now have the freedom to respond instantly to market developments at any hour of the day or night. This move aligns with the always-on nature of digital assets and addresses the previous limitation of traditional market hours hindering quick responses to market changes.
The product supports both institutional-grade and retail-sized contracts, providing access to a wide range of traders. Clearing for these contracts is handled by Nodal Clear, a CFTC-regulated clearinghouse, ensuring compliance and risk transparency. Coinbase has partnered with industry leaders like Virtu Financial and Futures Commission Merchants to support this launch.
Coinbase’s larger derivatives strategy includes plans to introduce regulated perpetual-style futures to the U.S. market. Perpetual-style futures, which offer continuous trading without expiry, are popular among crypto traders and are commonly found in offshore markets. Andy Sears, CEO of Coinbase Financial Markets, described this development as a “game-changer” for the industry, emphasizing the seamless access to futures trading that Coinbase now provides.
In addition to the 24/7 trading launch, Coinbase recently made headlines with its $2.9 billion acquisition of Deribit, the largest acquisition in the crypto industry to date. This acquisition will add Deribit’s options and perpetuals platform to Coinbase’s suite of derivatives products, moving the exchange closer to its goal of offering spot, futures, perpetuals, and options trading under one platform.
The timing of these moves coincides with a surge in derivatives activity, with Bitcoin futures volumes reaching record levels in recent months. Coinbase’s Q1 results showed growing demand for non-transaction services, indicating a strong market response to the exchange’s strategic moves.
Overall, Coinbase’s expansion into the derivatives market and its focus on regulated products demonstrate the exchange’s commitment to providing innovative and comprehensive trading options for its users. With the introduction of 24/7 trading and plans for perpetual-style futures, Coinbase is positioning itself as a key player in the evolving cryptocurrency landscape.