Coinbase Derivatives Exchange, formerly FairX, will launch Nano Ether Futures Contractss (ET) as its second cryptocurrency derivatives product on August 29.
Coinbase said the BIT would initially target several leading brokerage intermediaries, including retail brokerages EdgeClear, Ironbeam, NinjaTrader, Optimus Futures, Stage 5, and Tradovate, as well as clearing firms ABN AMRO, ADMIS, Advantage Futures, ED&F Man, Ironbeam and Wedbush.
Coinbase Derivatives Exchange introduced its first crypto derivatives product, Nano Bitcoin Futures (BIT) on June 27.
As of August 24, 2.9MM contract were traded in Nano Bitcoin Futures Contracts Contract (BIT), which averages 77,000 contracts daily.
Coinbase is currently waiting for regulatory approval to obtain a Futures Commission Merchant license (FCM). The company will be able to offer clients margin futures contracts once it has obtained the FCM license.
Coinbase Derivatives Exchange can be found at CFTCFutures exchange on a DCM (designated contract market) that is regulated.
FairX launched its futures platform in May 2021. Coinbase purchased it in 2022 to launch cryptocurrency derivatives products.
Boris Ilyevsky (head of Coinbase derivatives trading exchange) stated that:
“While the company is still in its early stages of development, we believe product innovation has contributed to its success.
The company stated that the contract is equivalent in time to 1/10th of ether. Retail investors are required to put less capital up front, which allows participants to trade easily in volatile markets, such as ether, and to take on risk.
Coinbase stated that although the launch of the product comes at a moment when there is heightened volatility in cryptocurrency markets, Coinbase also cited a Financial Times report which said the global crypto derivatives industry was worth $3 trillion.
The cryptocurrency market was in a slump. The price of bitcoin fell by about 56%, while ether, Ethereum’s native token, dropped about 70%.
Blockchain.News reports that Coinbase Prime, which offers secure custody and advanced trading platforms, has launched an Ethereum Staking Service for U.S. corporate clients. This service allows businesses to gain passive risk aversion. Profitability.