Coinbase seeks Approval for XRP Futures Contracts
Coinbase is planning to introduce futures contracts for Ripple’s XRP token. The company has filed with the US Commodity Futures Trading Commission (CFTC) for approval. This move aims to provide a regulated way for traders to invest in XRP.
the filing,made by Coinbase Derivatives LLC,outlines a new cash-settled monthly contract. It is indeed set to launch on April 21, pending regulatory approval. Each contract, symbolized as XRL, will represent 10,000 XRP, valued at around $20,000 at current prices.
Coinbase Institutional, the exchange’s platform for professional traders, announced this on April 3. The firm stated that the product will offer a capital-efficient way to gain exposure to one of the most liquid digital assets.
According to the filing, Coinbase will list three monthly contracts at a time. Trading hours will be from 5:00 p.m.to 4:00 p.m. CT, Sunday through Friday, with a one-hour break each weekday.
Contracts will settle against the MarketVector Coinbase XRP benchmark index. This index is based on volume-weighted median prices from Coinbase’s spot market.
Coinbase noted that it has consulted with Futures Commission Merchants and other market participants who support the introduction of XRP futures on its platform.
XRP’s price remained largely unchanged following the news. This lack of reaction may be due to the fact that XRP futures are not new to crypto traders. Major platforms like Binance, OKX, Bybit, and BitMEX have long offered similar contracts.
These efforts come as Coinbase navigates broader market challenges. Coinbase stock (NASDAQ: COIN) dropped 31% in Q1, its worst quarter since the FTX collapse, amid declining trading activity across the crypto sector.
