Key Highlights
- Coinbase has paused 25 perpetual futures contracts on its Advanced and International Exchange.
- All positions have been closed based on the average index price during the last 60 minutes before the pause.
- The list of futures contracts includes altcoins and meme coins such as TRB-PERP, ENS-PERP, 1000FLOKI-PERP, and others.
Coinbase has officially announced the suspension of 25 perpetual futures contracts on its Advanced and International Exchange platforms as part of its efforts to streamline its derivatives offerings and prioritize liquidity and market quality.
According to an announcement shared on X on Tuesday, Coinbase Markets stated that all remaining open positions in the affected contracts were automatically settled using the average index price calculated over the last 60 minutes before suspension.
The suspended perpetuals include altcoins as well as meme-associated assets such as TRB-PERP, RARE-PERP, NEIRO-PERP, A-PERP, ME-PERP, XTZ-PERP, KMNO-PERP, RAY-PERP, STX-PERP, ENS-PERP, GMT-PERP, SNX-PERP, 1000FLOKI-PERP, 0G-PERP, ORDI-PERP, NIL-PERP, BIO-PERP, UMA-PERP, BEAM-PERP, INIT-PERP, SOMI-PERP, EGLD-PERP, CLANKER-PERP, SOPH-PERP, and BIGTIME-PERP.
Coinbase stated that the decision indicates its commitment to maintaining “high-quality derivatives markets” by aiming only for products that meet strict liquidity and market-quality standards.
Plans to improve listing process
The exchange noted that low-volume or underperforming contracts can result in poorer price integrity and lower trading experiences for users. By suspending these 25 perpetual futures, Coinbase targets allocating more resources to the contracts that are in the highest customer demand.
Coinbase also indicated plans to improve its listing process in the future, including faster internal evaluations and advanced frameworks to bring new, high-quality perpetual futures to market more efficiently.
This is in line with previous suspensions made by Coinbase in recent times. The exchange has been known to occasionally review and suspend perpetual contracts that do not manage sufficient trading volumes, which is a common practice for many large cryptocurrency exchanges.
Coinbase has continued to introduce more derivatives, although selectively, while suspending some others. Despite this, the exchange currently has more than 150 perpetual and futures contracts, making it one of the shops for cryptocurrency trading.
Expansion plan
As part of its broader expansion, Coinbase has introduced a crypto-backed lending product in the UK, enabling suitable clients to obtain USDC loans based on their BTC, ETH, and cbETH assets in the application itself. The service, launched on Monday, leverages the on-chain lending protocol Morpho on Base and helps users access liquidity in less than one minute without liquidating their crypto holdings.
Borrowed USDC can be transferred internationally free of charge or used to purchase British pounds for daily purchases.
UK clients can use the facility simply by clicking on “Borrow” in the Coinbase mobile app interface. Bitcoin loans could be as high as $5 million, depending on the collateralization. Additionally, Coinbase One clients might receive USDC rewards worth up to 3.5% APY.
Broader context
The move is part of a broader development in the world of crypto derivatives. As more players join both the centralized and decentralized crypto derivatives scene, exchanges such as Coinbase are becoming more concerned about having deep liquidity pools instead of many products.
However, there is no impact on spot trades involving the underlying instruments. In fact, traders are asked to square off their positions before the suspension to avoid any complications. The auto-settlement process will see to it that there are no unfinished leveraged positions.
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