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Coinbase Derivatives To Offer Oil and Gold Futures Contracts in Push To Bridge TradFi and Digital Assets

May 23, 2024

The derivatives arm of the largest US-based crypto exchange is launching retail-sized futures contracts for oil and gold.

In a statement, Coinbase Derivatives says that while crypto derivatives remain at the core of its business, it is introducing commodities futures contracts to give customers enhanced trading opportunities in the traditional markets.

Commodity futures contracts oblige buyers to purchase an underlying commodity such as oil, gold and silver at a predetermined future price and date. Investors take advantage of these products to hedge investment positions and capitalize on the price movement of the underlying asset.

Explains Coinbase,

“Our main objective in introducing new futures contracts is to provide diversified markets that facilitate price discovery and risk management.”

The Commodity Futures Trading Commission (CFTC)-registered exchange says it decided to offer the new commodity futures contracts sized at 10 barrels of oil and 1 troy ounce of gold after noticing increased demand for retail-focused products on accessible and regulated exchanges.

Coinbase says the new contracts, which will launch on June 3rd, will cater to both seasoned investors and retail enthusiasts.

“We believe that offering our participants access to futures on traditional commodities like oil and gold, alongside crypto commodities is a natural expansion of our product suite. We’re eager to see these contracts mature and the liquidity they will bring to retail and institutional investors in a regulated manner.”

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