Coinbase Breaks Into Crypto’s Biggest Market, for ‘Perpetual Futures’ Abroad

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The futures are used as an easy way to make leveraged bets on tokens. Trading in crypto derivatives is far more active than in the spot market.

Coinbase Global said it earned regulatory approval to offer so-called perpetual futures to retail customers outside the U.S., finally giving it an entree into what has grown to be crypto’s largest market.

Coinbase in a blog post said its Coinbase Advanced platform would start offering some customers the option to invest in perpetual futures “in the coming weeks.” Derivatives such as perpetual futures have grown to make up the bulk of crypto trading abroad, even as the products aren’t offered to U.S. retail investors. For example, in the past 24 hours on Binance, the largest crypto platform, investors have traded about $5 billion worth of tokens on the spot market and $28.5 billion worth of derivatives.

Coinbase launched its international exchange in May, allowing non-U. S. institutions to trade perpetual futures contracts. Last month, it received approval in the U.S. to offer federally regulated crypto futures, bringing it into competition with firms that offer traditionally structured futures in Bitcoin and Ether.

 

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