Traders access the instruments through Coinbase Financial Markets, the exchange’s registered futures commission merchant and designated contract market, rather than the Bermuda-based Coinbase International Exchange that opened last year.
The structure essentially copies offshore perpetuals, which are cash-settled contracts that roll indefinitely, but follows US margin and clearing requirements.
He reported that Coinbase International Exchange processed $5 billion in retail perpetual volume during May alone and added:
“We are not ready to let crypto derivatives trading be a non-US phenomenon.”
Branzburg argued that bringing the instruments home gives domestic customers “the most powerful crypto trading product on the market … on the safest exchange.”
Perpetual futures appeal to sophisticated traders who hedge spot exposure, arbitrage funding spreads, or seek higher notional leverage than spot borrowing permits.
Coinbase sets a maximum leverage of 10x, which is lower than the 20x to 50x ratios common on most offshore platforms.
Coinbase seeks to capture share by marketing regulatory clarity and custody segregation to prop trading firms and high-net-worth individuals who previously routed orders abroad.
Branzburg said the firm will expand contract listings based on demand but plans to keep the leverage cap in place to preserve market integrity.
