Summary
- Coinbase has submitted a request to the Commodity Futures Trading Commission (CFTC) through its derivatives arm to introduce single-stock perpetual futures in the U.S.
- The proposed contracts will include around 50 to 60 options, featuring well-known companies like Apple, Microsoft, Tesla, and Nvidia.
- This initiative is part of Coinbase's broader strategy to expand its derivatives offerings within the U.S. market.
Coinbase is aiming to bring an influential crypto trading tool to the U.S. equity market by filing for the approval of single-stock perpetual futures with federal authorities.
The filing, made on Friday through Coinbase Derivatives, seeks the CFTC's endorsement for contracts that would allow U.S. traders to gain leveraged exposure to individual stocks without actually owning them.
Myriad: How low will Nvidia go? Click to make your prediction.The filing indicates that the product is categorized as a single-stock future and is currently awaiting approval. Coinbase has stated that this is its "first set" of U.S. single-stock perpetuals, with plans to offer 24/5 access to various equities.
Perpetual futures, or "perps," are derivative contracts that mirror an asset's price without an expiration date, allowing traders to maintain their positions indefinitely as long as they fulfill margin and funding requirements.
While these contracts have been a common feature in crypto markets, U.S. traders have largely been restricted from accessing them until recently. According to The Wall Street Journal, Coinbase is preparing to introduce around 50 to 60 contracts, including those for Apple, Microsoft, Tesla, and Nvidia, possibly launching later this year pending regulatory approval.
This initiative represents a significant advancement in Coinbase's efforts to develop its onshore derivatives operations. Earlier this year, the company became the first U.S. exchange authorized to offer regulated crypto perpetual futures, subsequently launching contracts with leverage up to 50x. Coinbase already provides stock perpetuals to eligible non-U.S. traders, having debuted this offering in March.
As the demand for perpetual futures increases, Coinbase's filing occurs alongside a competitive landscape for similar products. The CFTC has recently approved Bitcoin perpetual futures for Kalshi, which has since diversified into commodities such as copper, while Polymarket is also developing its own crypto perpetual futures offerings.
Investing in a single-stock perpetual does not grant any shareholder rights, dividends, or ownership, only exposure to price movements. The specific terms and leverage limits of these contracts are not yet fully detailed, and they still require regulatory approval before trading can commence.