MarketCoinbase Submits Application to CFTC for XRP Futures Trading

Coinbase Submits Application to CFTC for XRP Futures Trading

Date:

Coinbase Institutional filed with the CFTC to self-certify XRP futures.

XRP futures contracts will be cash-settled and margined under the symbol XRL. Coinbase Institutional has lodged a petition with the U.S. Commodity Futures Trading Commission (CFTC) for the launch of XRP futures. This contract offers a regulated and capital-efficient avenue for exposing traders to XRP. The contract’s launch is on April 21, 2025, pending regulatory review.

The XRP futures contract will trade under the symbol XRL. Each contract will represent 10,000 XRP and settle in U.S. dollars. The contract will be cash-settled and margined, allowing traders to speculate on the prices of XRP without owning the asset. Traders can buy or sell contracts for the current month and two months ahead.

In the event of an XRP price move greater than 10% over any hour period, trading will stop for that duration. Coinbase noted that Futures Commission Merchants (FCMs) and market participants support the launch of the contract.

Regulatory and Market Expansion

Coinbase uses self-certification as a method of launching this contract without CFTC approval. During the review process, however, the regulator can still object. The exchange has previously utilized this avenue to launch futures on Solana (SOL) and Hedera (HBAR). It is awaiting CFTC approval for future trading based on Cardano (ADA) and Natural Gas (NGS).

The launch of XRP futures is complementary to an increasing institutional appetite for the token. It is highly possible that the newly included Ripple USD (RLUSD) could significantly affect XRP’s trading volumes.

Previous Coinbase XRP Futures Attempts

In 2023, Coinbase launched its XRP perpetual futures products for users outside the United States, leaving the derivative unregulated in its domestic offerings. This allows the current action, coming as it is, just as regulatory clarity improves, to be taken.

Coinbase is, therefore, looking to scale up liquidity for XRP through this launch. The contract will then enable institutional and retail traders a much safer hedge against price movements and an opportunity to speculate on the future prices of XRP. If successful, it could drive further adoption of crypto derivatives in the U.S. market.

Highlighted Crypto News Today

When Will Cardano (ADA) Break the $1 Barrier?

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot News

Related
Related

Is It Possible for Shiba Inu (SHIB) to Reach $1 if Bitcoin (BTC) Reaches $500,000? Unlikely, Yet This $0.007 Token Might Climb to $7

As Bitcoin (BTC) continues to break new records, some investors speculate whether Shiba Inu (SHIB) c...

Anticipate Upcoming Crypto FOMO: Invest Early in This Cryptocurrency That Could Increase 30x Like Post-FTX Solana (SOL)

The market sentiment of Crypto FOMO (Fear of Missing Out) is increasing as traders expect a major pr...

Extsy Set to Launch on April 4th, 2025: Ushering in a New Era of Seamless Cryptocurrency Trading with Industry-Leading Features

London, United Kingdom, April 4th, 2025, Chainwire Extsy, the cutting-edge cryptocurrency exchange...

Cosmos Rises by 40%—Will ATOM Maintain Bullish Momentum?

Cosmos price analysis favours the buyers and suggests a positive trend in the upcoming sessions.ATOM...