Coinbase has introduced pre-launch markets on its International Exchange and Coinbase Advanced platforms, allowing eligible users to trade perpetual futures contracts on tokens that have not yet been released. Institutional users can access this feature through Coinbase International Exchange, while retail traders can do so via Coinbase Advanced, with leverage up to 2x.
Once the underlying token is listed on relevant spot exchanges, the contracts will automatically convert into standard perpetual futures contracts. These pre-launch markets are available in eligible regions, excluding the U.S., U.K., and Canada, and operate differently from standard perpetual futures markets, with unique index pricing mechanisms and conversion risks.
However, it is important to note that pre-launch markets come with increased risks, such as lower liquidity, higher volatility, and higher liquidation risks, making them more susceptible to fluctuations and potential losses compared to traditional perpetual futures markets.
In a separate development, Coinbase International Exchange has partnered with Fireblocks Network to provide perpetual futures and spot trading features to institutional and retail clients in select regions. Fireblocks, a blockchain security service provider, will allow customers of Coinbase International Exchange to securely connect their accounts using its network.
CEO Usman Naeem highlighted the collaboration as a testament to Coinbase’s commitment to offering a reliable trading infrastructure for its global clientele, expanding offerings for institutional and retail clients. The international division of Coinbase enables institutional investors outside the U.S. to trade perpetual cryptocurrency futures, following the introduction of derivative offerings to clients in 2023.