Coinbase Derivatives to Launch Futures Trading for Oil and Gold Starting June 3

Coinbase Derivatives to Launch Futures Trading for Oil and Gold Starting June 3
Photo by Viktor Forgacs™️ / Unsplash

Coinbase Derivatives, a prominent player in the derivatives market, has announced an expansion of its product offerings to include futures on commodities like oil and gold. This move will complement the existing cryptocurrency derivatives already available on the platform. The new trading positions are set to begin on June 3, 2024.

This addition is part of Coinbase Derivatives' broader strategy to diversify its offerings and provide traders with new opportunities for risk management and cross-hedging. The company emphasized that while digital asset futures contracts remain the core of their business, there is a significant push to expand their portfolio to include other promising positions.

The new futures contracts will specifically involve 10 barrels of oil and 1 troy ounce of gold, with settlements in U.S. dollars. This marks a significant expansion into traditional commodity markets, contrasting sharply with the primarily digital focus of the platform until now.

Coinbase Derivatives began operations in May 2023 and has been actively expanding its product line. In June 2023, the exchange announced the inclusion of bitcoin and Ethereum futures contracts. Other derivatives products available on the platform include those based on Litecoin, Dogecoin, and Bitcoin Cash.

The company also highlighted that it is a fully regulated entity by the U.S. Commodity Futures Trading Commission (CFTC), ensuring that its operations are within the bounds of legal compliance.

This strategic move is likely to attract a new demographic of traders who are interested in commodities but are looking for platforms that offer a blend of traditional and digital futures contracts. As the trading of these new products begins on June 3, 2024, it will be interesting to see how they integrate with the current offerings and what new dynamics they bring to the market.