Coinbase Derivatives Plans Cash-Settled Futures for Dogecoin, Litecoin, and Bitcoin Cash

cryptonews.com:

Coinbase, a prominent crypto exchange, is gearing up to launch futures trading for some notable cryptocurrencies, including the popular meme coins Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH).

Coinbase believes that Dogecoin’s sustained popularity indicates it has evolved beyond its meme beginnings to establish itself as a significant player in the cryptocurrency market. 

In letters addressed to Commodity Futures Trading Commission (CFTC) Secretary Christopher Kirkpatrick on March 7, Coinbase Derivatives intended to launch cash-settled futures contracts for Dogecoin, Litecoin, and Bitcoin Cash, potentially starting on April 1. These contracts, if approved, would allow traders to speculate on the future price movements of these cryptocurrencies without directly owning them. The filing specifies details like contract size, settlement methods, and overall structure.

Coinbase is reportedly leveraging a self-certification process outlined in CFTC Regulation 40.2(a) to list these futures contracts. This process allows them to list the contracts without explicit CFTC authorization, as long as they comply with existing regulations.

Coinbase’s developments into regulated futures trading in the US follow its acquisition of FairX, a CFTC-approved derivatives exchange, in 2022. This move, together with their August 2023 approval for futures trading despite SEC scrutiny, suggests a strategic shift.

At the time of the FairX acquisition, Coinbase expressed its aim of making the derivatives market more accessible to its millions of retail customers, indicating a strategic focus on broadening its services and catering to a broader range of investors.

Additionally, Coinbase defends listing Dogecoin futures by emphasizing