Coinbase has launched derivatives trading for professional investors in the UK, offering over 170 contracts across crypto, commodities, equities, and foreign exchange with leverage of up to 50 times. The platform includes three contract types: perpetuals, dated futures, and crypto options. Perpetuals have no expiry date, trade around the clock, and offer up to 50x leverage, while dated futures settle on fixed dates and cap out at 20x leverage.
Trading Details
According to UK and international vice president Keith Grose, the rollout will be progressive, with access available to investors classified as professional clients. The Financial Conduct Authority has barred the sale of crypto derivatives to UK retail consumers since 2021.
Regulatory Framework
The launch is made possible by the investment services authorization, or MiFID licence, that Coinbase secured from the FCA on July 7. This licence allows Coinbase to offer instruments beyond crypto. The company has already taken crypto futures into 26 European countries in March under MiFID II, at leverage of up to 10 times.
Market Context
Coinbase's derivatives launch is part of its 'Everything Exchange' strategy, aiming to integrate crypto, stocks, derivatives, and prediction markets into one app. The company notes that global crypto derivatives volume is significantly higher than spot markets, leaving professional traders reliant on unregulated venues.
