Coinbase Launches XRP Futures Contracts Amid Regulatory Clarity
1min read Coinbase Institutional, a prominent player in the cryptocurrency exchange sector, has filed with the Commodity Futures Trading Commission (CFTC) to introduce futures contracts for Ripple’s XRP token. This move, announced on April 3, aims to provide a regulated and capital-efficient way for traders to gain exposure to one of the most liquid digital assets. The firm anticipates that the contract will go live on April 21.
The XRP futures contract, as detailed in the certification filing, will be a monthly cash-settled and margined contract trading under the symbol XRL. Each contract represents 10,000 XRP, currently valued at approximately $20,000 at $2 per token. The contract will track XRP’s price and be settled in US dollars. Trading will be available for the current month and two months ahead, with a safety measure in place to pause trading if spot XRP prices move more than 10% in an hour. coinbase has engaged with Futures Commission merchants (FCMs) and market participants who support the decision to launch an XRP contract.
This development marks a significant step for XRP, which has faced legal uncertainties due to its involvement in the SEC’s case against Ripple. The recent settlement with the SEC and the decision by the SEC to withdraw its appeal in the legal battle with Ripple have improved the regulatory atmosphere surrounding XRP. This could pave the way for greater institutional involvement in the crypto derivatives market. The new leadership at the U.S. Securities and Exchange Commission, under Acting Chair Mark Uyeda, has adopted a more constructive stance toward crypto, opting to drop several ongoing cases against industry players, including Coinbase. This friendlier posture has set the groundwork for increased institutional involvement in the crypto derivatives market and greater confidence in U.S.-based digital asset products.
Coinbase’s upcoming XRP futures contracts will be listed through its derivatives arm, Coinbase Derivatives, which has previously rolled out futures for assets like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). Although Coinbase previously listed XRP perpetual futures on its international exchange in 2023, this offering was for non-U.S. customers. The latest announcement, which comes on the back of better regulatory clarity, now offers this product to customers in the U.S. Essentially, in its bid to self-certify the product, Coinbase is leveraging its status as a designated contract market (DCM) to fast-track the listing, assuming no objections from the CFTC during the review window. The XRP announcement comes three weeks after Coinbase revealed a similar product for Cardano (ADA).
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