Coinbase Files for XRP Futures Trading
Major crypto exchange Coinbase has filed for XRP futures trading with the US Commodity Futures Trading Commission (CFTC).
According to the tweet posted on 3 April, the CFTC-regulated derivatives exchange Coinbase Derivatives has filed with the regulator to self-certify XRP futures. The team says this will enable it to bridge “a regulated, capital-efficient way to gain exposure to one of the most liquid digital assets.”
The exchange added that the contract could go live on 21 April 21 2025, while the details are yet to come as the launch approaches.
The filing also notes that Coinbase aims to offer the initial listing of the XRP Futures contract on or after 21 April.
Furthermore, the XRP Futures contract will be a monthly cash-settled and margined contract with the XRL symbol. It’s a USD cash-settled contract based on the index called the MarketVector Coinbase XRP Benchmark Rate.
The contract size is 10,000 XRP. As 1 XRP is currently worth around $2, the contract is worth $20,000.
Also, Coinbase will initially offer three front months of the contract for trading.
Trading in the XRL contract is also subject to price fluctuation limits as a safety measure. If the limit is hit on the lead month of XRL Contract, “all related instruments will be halted.” Trading will be halted if spot XRP prices change above the 10% limit in an hour.
Additionally, there is a position limit to an aggregate of 4,000 XRP (XRL) futures, which is equivalent to 40M XRP, the document says.
Futures Expansion in the US
In March this year, Coinbase announced its plans to launch 24/7 Bitcoin and Ethereum futures trading through Coinbase Derivatives. This was the first opportunity for US traders to access perpetual-style futures contracts without expiration dates.
The offer included contracts of various sizes in order to accommodate both institutional and retail traders.
Furthermore, in February, Coinbase introduced CFTC-approved futures contracts for Solana (SOL) and Hedera (HBAR), while in late March it added Cardano (ADA) to the mix as well.
In July 2022, Coinbase Derivatives also launched margined futures contracts for several major cryptocurrencies, including Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), Stellar (XLM), and Shiba Inu (SHIB).
Notably, the exchange recently argued that crypto derivatives trading accounted for some 75% of global crypto volume. However, many of these transactions occurred outside the US.
Meanwhile, when it comes to Ripple, there are rumors that this major company and the team behind the XRP coin is eyeing an IPO in the US. A public offering could be fuel for a significant XRP price increase in the near future.
Another major recent US-Ripple news is that the company settled with the Securities and Exchange Commission (SEC). It agreed to pay a $50 million penalty and withdraw its cross-appeal in the long-running lawsuit. The penalty is significantly lower than the initially asked $125 million.
In return, the SEC said it would request the removal of an injunction that prevents Ripple from selling XRP to institutional investors.
At the time of writing, XRP has increased 1% in a day, trading at $2.06. It is down 8% in a week and 16% in a month.
At the same time, it has appreciated 260% over the past year.
The coin hit its all-time high of $3.4 in January 2018, decreasing by 39.5% since.
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