EddieJayonCrypto
23 May 24
Coinbase Derivatives, the derivatives arm of the largest US-based crypto exchange, is launching retail-sized futures contracts for oil and gold. While crypto derivatives remain central to its business, the introduction of commodities futures contracts aims to provide customers with enhanced trading ...
Coinbase Derivatives, the derivatives arm of the largest US-based crypto exchange, is set to launch retail-sized futures contracts for oil and gold. The new contracts, which oblige buyers to purchase underlying commodities at a predetermined future price and date, are aimed at providing enhanced trading opportunities in traditional markets.
These contracts are sized at 10 barrels of oil and 1 troy ounce of gold and are intended to facilitate price discovery and risk management. They are designed to cater to both seasoned investors and retail enthusiasts, with a launch date of June 3rd to meet the increased demand for retail-focused products on accessible and regulated exchanges.
The introduction of commodities futures contracts complements Coinbase Derivatives' core business in crypto derivatives, expanding its product suite to offer customers diversified markets for both traditional and crypto commodities in a regulated manner.
The Commodity Futures Trading Commission (CFTC)-registered exchange made the decision to offer these new contracts after recognizing the growing interest in retail-focused products. With this move, Coinbase aims to bring liquidity to both retail and institutional investors while broadening access to futures on traditional commodities alongside crypto commodities.