Coinbase is ready to change the U.S. market for crypto derivatives with its upcoming 24/7 perpetual future contracts for Bitcoin and Ethereum. This move works towards providing traders with uninterrupted access to advanced trading tools, bridging the gap between U.S. regulations and global market trends.
Importance of Perpetual Futures
Perpetual futures offer traders a formidable trifecta: no expiration dates, enormous leverage, and 24/7 access. These contracts allow indefinite position holding, with leverage up to 125x on some platforms, magnifying potential gains and hazards.
The 24/7 trading window serves the nonstop crypto industry, enabling rapid responses to global events. For example, during the banking crisis in March 2023, perpetual futures trading on Binance increased by 300% as traders sought ways to take advantage of market instability.
This combination of attributes has encouraged the quick rise of perpetual futures, which now account for over 70% of all crypto derivatives trading volume.
Coinbase and Regulatory Backbone
Coinbase took a huge step in U.S crypto regulation by partnering with the Commodity Futures Trading Commission (CFTC). By launching perpetual futures under a CFTC-regulated body, Coinbase ensures adherence while fostering trust in the domestic market. Coinbase’s cooperation with Nodal Clear further enhances its infrastructure, allowing traders a secure and transparent environment.
Furthermore, Coinbase’s foray into perpetual future trading can be a big game-changer in the American cryptocurrency market, in which the derivatives segment comprises a whopping 75% of the global trade.
By offering a regulated avenue, Coinbase fills the risks associated with unregulated exchanges, which currently dominate the segment. The entry is likely to increase domestic liquidity and attract institutional investors, with the advantage of having markets open 24/7 with secure trading systems.
Coinbase’s continuous futures trading is built on well-built infrastructure, ensuring stability and accessibility for all traders. Through its partnership with Nodal Clear, Coinbase delivers institutional grade clearing services, lowering counterparty risk and boosting transparency.
The platform accommodates both retail and institutional traders by providing multiple contract sizes, including nano contracts for tiny stakes. All deals are settled in USDC, a globally trusted stablecoin, simplifying transactions and minimizing volatility risks.
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