Coinbase has unveiled its latest offering: stock perpetual futures for eligible traders outside the United States. This move provides 24/7 leveraged synthetic exposure to US stocks on a regulated, centralized platform, responding to the increasing demand for continuous equities access.
This initiative makes Coinbase one of the first major centralized exchanges to launch stock perpetual futures, further solidifying its position in the global derivatives market. The expansion aligns with Coinbase’s long-term vision of creating the “Everything Exchange,” which allows traders to access a comprehensive range of assets, including cryptocurrencies, traditional equities, and emerging markets.
Stock perpetual futures equip traders with the opportunity to gain leveraged exposure to publicly-listed US stocks, facilitating continuous trading around the clock, including weekends. The growing interest among traders for uninterrupted equity exposure stems mainly from challenges accessing US markets, which can often be capital-intensive. Notably, much of this trading activity has been migrating to decentralized platforms handling billions of dollars in daily trading volume. Coinbase’s introduction of stock futures aims to consolidate this activity within a regulated environment, ensuring institutional-grade risk management.
At its launch, eligible customers can engage in trading perpetual futures on a selective group of highly liquid US stocks, often referred to as the “Magnificent 7,” which includes industry giants such as Apple Inc., Microsoft, Alphabet Inc., Amazon, NVIDIA, Meta Platforms, and Tesla. In addition, ETF perpetual futures, including popular funds like the SPY and QQQ, are also available for trading where permitted. Over time, Coinbase plans to expand its offerings in response to customer demand, potentially adding more equities, additional indices, commodities, and other globally recognized assets.
Key features of Coinbase’s stock perpetual futures include:
– Continuous 24/7 trading, accommodating weekends
– Leverage capabilities of up to 10x on single stocks and up to 20x on ETF perpetuals
– USDC settlement processed via cryptocurrency channels
– Cross-margining that enables efficient capital allocation across all perpetual futures and spot markets
– Access for retail traders through the Coinbase Advanced user interface and APIs, while institutional players can engage through the Coinbase International Exchange.
Moreover, these stock perpetuals utilize the same reliable perpetual futures engine and risk management framework that Coinbase applies across its crypto derivatives markets.
The timing of this launch is particularly significant given that traditional US stock markets typically operate on a five-day workweek. With global events, macroeconomic data, and cryptocurrency volatility affecting trading dynamics, stock perpetuals provide retail traders a capital-efficient way to access US markets with continuous trading and built-in leverage. For institutional traders, the product allows for efficient exposure management in real-time environments, along with weekend hedging possibilities and cross-collateral efficiency.
Eligible non-US retail traders can now start trading US stock perpetual futures on Coinbase Advanced, while institutions can access these products on the Coinbase International Exchange. It’s important to note that this offering is not available for US persons and may face restrictions in particular jurisdictions. Coinbase is actively working to extend this innovative service to additional regions in the future.
