In the international market, perpetual futures contracts have become the mainstream of crypto derivatives, with some reports showing that their trading volume accounts for up to 90% of the entire crypto market. However, within the United States, such products were almost unavailable in the past, and US retail investors had to go offshore to trade perpetual futures (perp), but this gap is expected to be partially filled after July 21.
The largest US exchange, Coinbase Derivatives Exchange, will officially launch its first CFTC-approved "US Perpetual-Style Futures", aligning with the Trump administration's 2025 "compliant opening" regulatory approach, symbolizing the start of the US perpetual contract era.
Product Design: Five-Year Long Contract, Nano Specifications, and 24/7 Trading
Although the new contract product has a five-year expiration date, it supports 24/7 trading and has a built-in funding rate mechanism similar to current perpetual contracts, which is very similar to the contract experience users have on other exchanges.
Specific mechanisms are as follows:
Funding rate is accumulated hourly and cash-adjusted and settled twice daily at designated times.
In each settlement cycle, the accumulated funding will be consolidated and credited or deducted from the trader's account based on their trading position.
Coinbase Derivatives Exchange plans to launch two new contracts on the trading day of July 21:
Nano BTC Perpetual Futures (0.01 BTC)
Nano ETH Perpetual Futures (0.10 ETH)
However, the official has not specified how large the leverage can be, but it is expected to not be too large initially.
Could Reshape the US Derivatives Ecosystem
After FTX's bankruptcy, counterparty risk became more prominent. Coinbase launching similar products within the CFTC framework may see some funds flow back to the domestic market and force other exchanges to accelerate their pace. The CFTC Chairman stated in the first quarter of this year:
Supporting regulated innovative derivatives to protect investors, the direction has become clear.
Follow-up Observations and Risks
After the product goes live, trading volume and funding stability will be key indicators. If the CFTC and SEC continue to maintain a positive attitude, US derivatives types may expand rapidly. However, it is worth reminding again that the pressure of additional margin and long-term funding costs brought by leverage still exist, and investors should strictly control their positions.
