Regulation
Coinbase to Launch CFTC-Regulated Futures Trading for 5 Altcoins
Coinbase Derivatives plans to launch margin futures contracts for Avalanche (AVAILABLE), Chain (CONNECTION), Polka dot (POINT), Stellar (XLM) and Shiba Inu (SHIB).
ON June 28the service posted an announcement and submitted documents to the CFTC to list each contract under a self-certification form.
It intends to launch the products on July 15.
Coinbase Derivatives said it is the first U.S. futures exchange to offer margined futures contracts for each token and is “excited to drive market accessibility.”
The company added:
“We look forward to seeing these derivative contracts mature into a regulated market.”
Coinbase Derivatives said the contracts will allow participants to manage risk, speculate on price movements and invest with lower initial capital requirements.
The exchange added that it will collaborate with clearing house Nodal Clear, third-party futures commission agents (FCMs) and retail brokers.
Price unchanged
The five tokens did not see any significant price changes following the news and mostly followed the broader market downtrend.
At the time of writing, LINK was trading at $13.7, down 4.3% over the past 24 hours. SHIB fell 3.7% and traded at $0.00002 per token, while DOT fell 1.9% to $6.19 per token.
Two assets recorded changes close to zero: XLM fell 0.3%, while AVAX gained 0.3%. The two tokens were trading at $0.09 and $27.98 respectively at press time.
Coinbase Derivatives traded $34 million
Data from CoinGecko indicates that Coinbase Derivatives recorded $34.1 million in 24-hour open interest and $971.8 million in 24-hour volume on June 28.
Already the service offers various contractsincluding Bitcoin (BTC) and Ethereum (ET) futures, BTC nano futures and ETH nano futures. In April, it added Dogecoin (DOGE), Litcoin (LTC) and Bitcoin Cash (BCH) futures. It also offers contracts on crude oil and gold.
The US-focused derivatives service is distinct from Coinbase’s international exchange. Coinbase opened the latter service, based in Bermuda, with an initial focus on derivatives 2023 and since then he expanded it further in other exchanges.
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