Coinspeaker
Coinbase Derivatives to Launch Oil and Gold Futures Contracts
American publicly traded exchange Coinbase Global Inc (NASDAQ: COIN) through its Derivatives outfit is expanding its services beyond regular crypto trading by delving into the oil and gold sector.
The offering will be offered through Coinbase Derivatives with plans to officially launch its retail-sized futures contract for oil (NOL) and gold (GLD) by June 3. Consequently, these will join the existing list of Commodity Futures Trading Commission (CFTC)-regulated crypto futures on the platform.
Coinbase Derivatives Expands to Oil and Gold
Before now, Coinbase offered futures contracts on Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and even dog-themed memecoin Dogecoin (DOGE). The Coinbase Derivatives decision to list oil and gold futures contracts is a significant pivot for the crypto exchange and industry at large.
In its announcement, the Brian Armstrong-led firm confirmed that while it explores this new path, crypto derivatives remain at the core of its business. Expanding to include traditional commodities in its crypto commodities is perceived as a natural expansion for the Coinbase product suite.
The American company sees this milestone as another avenue to democratize its customers’ access to a suite of financial markets. Similarly, Coinbase says it is a way of showing its commitment to providing its users with unique and innovative trading opportunities within a regulated framework.
“Our main objective in introducing new futures contracts is to provide diversified markets that facilitate price discovery and risk management,” the derivatives service provider stated.
Coinbase claimed to have seen a massive increase in demand for retail-focused products on an accessible and regulated exchange after the launch of its BTC, ETH, BCH, LTC, and DOGE futures contracts. This market outlook contributed to the move to launch the NOL and GLD futures contracts This comes in addition to the need to provide crypto investors with cross-hedging opportunities across different asset classes.
Accordingly, the new futures contracts include 10 barrels of oil and 1 troy ounce of gold. These would be offered to investors as enhanced trading opportunities in traditional markets. This service will allow users to capitalize on price movements and hedge their existing assets. Noteworthy, the service will cater to both experienced investors and retail enthusiasts.
Coinbase Pushes for Product and Geographical Expansion
Apart from the Coinbase Derivatives futures contracts listing on oil and other assets, the company announced last month that it will list BRC-20 token Ordinals (ORDI) and Worldcoin (WLD) on its global exchange.
By April 11, it began allowing users to bet on the expected price performance of the two cryptocurrencies on the Coinbase International Exchange and Coinbase Advanced.
Coinbase has not limited its expansion to products and services alone as it equally pursues diversification outside the United States where it has faced several legal challenges. It recently received a restricted dealer license from the Canadian Securities Administrators (CSA). The license grants the exchange approval to offer its business offerings in the country legally.
This is in addition to the licenses that it holds from other regions like France, Spain, and many others.
Coinbase Derivatives to Launch Oil and Gold Futures Contracts
