Coinbase Expands Derivatives Market with XRP Futures Filing

Coinbase Expands Derivatives Market with XRP Futures Filing

TLDR

• Coinbase Institutional has filed with the CFTC to offer XRP futures contracts
• The XRP futures are expected to go live on April 21, 2025
• Each contract will represent 10,000 XRP and be settled in USD
• This will be the second CFTC-regulated XRP futures after Bitnomial’s launch in March
• Current XRP funding rates remain negative, suggesting bearish market sentiment

Coinbase Institutional has filed with the US Commodity Futures Trading Commission (CFTC) to launch futures contracts for Ripple’s XRP token, marking another step in the exchange’s growing derivatives offerings. The company announced on April 3 that it anticipates the contracts going live on April 21, 2025, pending regulatory approval.

The new XRP futures will operate as monthly cash-settled and margined contracts trading under the symbol XRL. Each contract will represent 10,000 XRP tokens, worth approximately $20,000 at the current price of around $2 per token.

“We’re excited to announce that Coinbase Derivatives has filed with the CFTC to self-certify XRP futures — bringing a regulated, capital-efficient way to gain exposure to one of the most liquid digital assets,”

Coinbase Institutional stated in their announcement.

Contract Details and Safety Features

The contracts will track XRP’s price and be settled in US dollars. Traders will have flexibility with contracts available for the current month plus two months ahead.

Trading will include safety measures that pause activity if spot XRP prices move more than 10% within an hour. This feature aims to prevent extreme volatility from disrupting the market.

The filing indicates that Coinbase has consulted with Futures Commission Merchants (FCMs) and market participants who support the launch of the XRP contract. This suggests industry backing for the new derivative product.

Coinbase’s move follows its recent launches of Solana (SOL) and Hedera (HBAR) futures contracts. The exchange is also awaiting CFTC approval for Cardano (ADA) and Natural Gas (NGS) futures contracts planned for launch by the end of the month.

Market Context and Competition

Coinbase will not be the first to offer CFTC-regulated XRP futures in the United States. In March, Chicago-based crypto exchange Bitnomial launched what it called the “first-ever CFTC-regulated XRP futures in the US.”

XRP futures trading is already available on many leading centralized crypto exchanges worldwide, including Binance, OKX, Bybit, and BitMEX. These markets provide context for Coinbase’s entry into XRP derivatives.

Current market sentiment for XRP appears bearish. Funding rates for XRP derivatives flipped negative in late March and have remained negative on major derivatives exchanges as of April 4, according to data from CoinGlass.

Negative funding rates indicate that short traders (those betting on price decreases) are willing to pay premiums to maintain their positions. This suggests strong conviction from bearish derivatives traders in the XRP market.

Regulatory Background

XRP has a complex regulatory history in the United States. The SEC initiated a lawsuit against Ripple Labs, the token’s developer, in 2020, alleging XRP’s status as an unregistered security.

Last month, Ripple CEO Brad Garlinghouse announced the SEC’s withdrawal of its appeal against the company. As part of the settlement, Ripple agreed to pay a reduced fine of $50 million, down from the original $125 million penalty.

This legal resolution may impact the future of XRP in US markets. Some experts believe the outcome could lead to the approval of spot XRP exchange-traded funds (ETFs) in the US.

Several fund managers have already filed with the SEC for XRP ETFs, including Bitwise, Canary Capital, 21Shares, WisdomTree, CoinShares, Grayscale, and Franklin Templeton. ProShares and Volatility Shares are also seeking approval for their XRP-related investment products.

The XRP futures launch by Coinbase represents another step in the evolution of regulated crypto derivatives in the US market. It provides traders with additional tools to gain exposure to XRP without directly holding the token.

Coinbase continues to expand its derivatives offerings through the self-certification process, which allows the exchange to streamline the introduction of new futures contracts unless the CFTC raises objections.

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