Coinbase Exchange has launched perpetual futures trading for its non-US consumers on Coinbase Advanced, with 5X Leverage and Regulatory Approval from the Bermuda Monetary Authority (BMA).
Effective immediately, Coinbase Advanced consumers in non-US jurisdictions can trade four perpetual contracts: bitcoin (BTC), ether (ETH), litecoin (LTC), and ripple (XRP). These contracts are settled in USDC, which is a stablecoin guaranteed by U.S. dollars.
Through advanced.coinbase.com, users can now access perpetual futures with up to 5X leverage (except for XRP, which is at 3X), with mobile trading options coming shortly. As part of an introductory promotion, consumers will pay 0% (maker) and 0.03% (taker) in transaction fees.
Coinbase enables perpetual futures for customers outside the United States. It has regulatory sanction from the Bermuda Monetary Authority (BMA), a leading regulator of digital assets renowned for its stringent framework in supervising crypto businesses.
The BMA granted Coinbase Exchange a class F license in May 2023, allowing it to offer perpetual futures to non-US institutions. According to Coinbase, its perpetual futures products adhere to stringent compliance standards, and the company intends to expand access to derivatives through Coinbase Advanced to serve more global customers.
Increasing Interest in Crypto Derivatives
Coinbase’s introduction of perpetual futures coincides with a substantial increase in the global crypto derivatives market. In March 2023, crypto derivatives accounted for an astounding 75% of the total crypto trading volume, which totaled $2.95 trillion, according to a report by CoinGecko.
Coinbase boasted that their perpetual futures provide traders with a number of benefits, including increased capital efficiency, simpler access to the crypto market with a limited initial investment, and improved risk management for their underlying crypto assets.
“Perpetual futures are only available to non-US customers in select jurisdictions. In order to create a Coinbase Advanced trading account, customers will need to pass through our standard assessment checks to determine their eligibility for this product,” Coinbase said in a blog post.
