Coinbase is taking steps to expand its U.S. derivatives business by pursuing regulatory approval for single-stock perpetual contracts. The crypto exchange filed two SEC notices on Sept. 1, covering its derivatives exchange and brokerage operations. The move could give U.S. traders leveraged exposure to individual stocks without owning the underlying shares.
Coinbase Targets U.S. Stock Perpetuals
Coinbase Derivatives filed Form 1-N with the SEC for its exchange operations. Meanwhile, Coinbase Financial Markets filed Form BD-N for its brokerage business.
Besides, the filings create a regulatory framework involving both the SEC and CFTC. Consequently, Coinbase can potentially list security futures while providing customers with regulated access.
The filings do not, however, ensure an imminent product launch. Coinbase has not disclosed trading dates, contract specifications, leverage limits, or supported stocks.
Overseas Product Offers Early Clues
Coinbase already offers single-stock perpetuals internationally to eligible customers. Its overseas lineup includes Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla.
Additionally, the international contracts allow continuous trading and use funding mechanisms without expiration dates. Moreover, traders receive price exposure rather than shareholder rights.
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