Coinbase is expanding its derivatives offering to the UK, giving eligible professional investors access to perpetual contracts, dated futures and crypto options as the exchange broadens its regulated financial-product offering in the country. The rollout, announced by Coinbase on August 11, will begin progressively over the coming weeks. Access is limited to customers who meet Coinbase’s eligibility requirements and are classified as professional clients.
The exchange said eligible investors will be able to trade more than 170 perpetual contracts covering crypto, commodities, equities, and foreign exchange, with 24/7 market access and leverage of up to 50x.
The expansion follows Coinbase’s recent UK investment-services authorization, which the company announced in July. The authorization allows Coinbase to offer investment services covering products beyond its existing crypto offering, including derivatives and equities.
Expanding UK derivatives offering
The new UK derivatives offering consists of three product categories: perpetuals, dated futures, and crypto options.
Perpetual contracts will cover more than 170 supported assets across crypto, commodities, equities and foreign exchange, according to Coinbase. Unlike dated futures, perpetuals do not have expiration dates and can be traded continuously.
Coinbase said the perpetual contracts will support leverage of up to 50x. Leverage can magnify both gains and losses, making the products materially different from conventional spot trading. The exchange will also offer dated futures with fixed settlement dates and leverage of up to 20x. Coinbase said these contracts incorporate the cost of carry into their pricing rather than using ongoing funding rates associated with perpetual contracts.
Crypto options will initially be limited to cryptocurrency underlying assets. The offering will include calls and puts, as well as single-leg and multi-leg strategies such as spreads and combinations.
UK launch follows MiFID authorization
The derivatives rollout follows Coinbase’s July announcement that it had obtained UK authorization to provide investment services. The authorization allows Coinbase to expand beyond its existing crypto offering and provide UK users with access to additional financial instruments. Coinbase previously said the authorization would enable derivatives and equity trading in the UK.
The Crypto Times reported in July that the authorization marked a broader expansion of Coinbase’s UK product suite, including plans for derivatives for institutional and advanced traders and equity trading for retail users. The latest rollout follows that July authorization and does not represent a separate regulatory approval announced by Coinbase.
Coinbase has also expanded its UK equity offering. On August 6, the company announced that UK users could trade nearly 4,000 U.S. stocks on the platform, with trading available 24 hours a day, five days a week.
Restricted to professional investors
Coinbase said the derivatives rollout is restricted to investors who qualify as professional clients under its eligibility requirements. The company said onboarding for dated futures will also provide access to perpetuals, while access to the products will be subject to its standard eligibility and suitability processes.
The FCA prohibits firms from selling or distributing cryptoasset derivatives to UK retail clients and from marketing such products in ways likely to reach retail clients. Coinbase’s UK entity, CB Payments Ltd, is authorized and regulated by the Financial Conduct Authority for investment services, according to the company’s disclosure.
Coinbase’s broader derivatives expansion
The UK rollout adds to Coinbase’s recent expansion of derivatives products across international markets.
In March, Coinbase launched perpetual futures tied to major U.S. technology stocks and ETFs for eligible non-U.S. users, including contracts covering Apple, Tesla, Nvidia, and other companies. Those products offered leverage of up to 10x for individual stocks and up to 20x for ETFs. In May, Coinbase also launched gold and silver perpetual futures for eligible non-U.S. retail and institutional traders. The contracts were USDC-settled and offered leverage of up to 25x.
The exchange has separately expanded regulated derivatives access for institutional clients. In May, Coinbase said it received CFTC clearance to connect U.S. institutions with global crypto derivatives markets through its futures commission merchant operation.
The UK products announced on August 11 remain restricted to eligible professional investors, with access rolling out progressively over the coming weeks.
Also Read: Robinhood Launches UK Crypto Trading With 50+ Assets via Bitstamp
