ECNETNews reports that Coinbase is set to launch futures contracts for Ripple’s XRP token, having filed with the U.S. Commodity Futures Trading Commission (CFTC) for approval.
The filing, submitted on April 3 by Coinbase Derivatives LLC, is a self-certification under Rule 40.2(a). It details a cash-settled monthly contract scheduled to debut on April 21, pending regulatory authorization.
Each contract will trade under the symbol XRL, representing 10,000 XRP, equating to approximately $20,000 at the current market value, assuming XRP maintains around the $2.00 mark.
This initiative was revealed by Coinbase Institutional, the exchange’s division focused on serving professional and institutional traders. In their statement, they emphasized that the new product will provide a “regulated, capital-efficient way to gain exposure” to a leading digital asset in the market.
Per the filing, Coinbase plans to offer three monthly contracts simultaneously. The product will be margined and USD-settled, with trading hours from 5:00 p.m. to 4:00 p.m. CT, Sunday through Friday, including a one-hour break each weekday from 4:00 to 5:00 p.m. CT.
Contracts will settle against the MarketVector Coinbase XRP benchmark index, which utilizes volume-weighted median prices derived from Coinbase’s spot market.
Coinbase has indicated that discussions with Futures Commission Merchants and other market stakeholders have been held, garnering support for the introduction of XRP futures on its platform.
Despite the announcement, XRP’s price remained mostly unchanged, likely due to the familiarity of traders with XRP futures; other major exchanges have already been offering similar contracts.
In recent developments, ECNETNews also highlighted Coinbase Institutional’s decision to open-source its multi-party computation (MPC) cryptography library aimed at enhancing security within the crypto ecosystem. These tools allow for signing transactions without exposing private keys and are accessible now with developer documentation.
These advancements come as Coinbase grapples with significant market challenges, with its stock experiencing a 31% decline in Q1, marking its worst quarter since the FTX crisis. Currently, the stock has dropped over 8% in the past week.
