Coinbase Files with the CFTC to Launch XRP Futures Contracts

US crypto exchange Coinbase has filed with the US Commodity Futures Trading Commission (CFTC) to launch futures contracts for Ripple's XRP token.

US crypto exchange Coinbase has filed with the US Commodity Futures Trading Commission (CFTC) to launch futures contracts for Ripple’s XRP token, it announced on Monday.

“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,” stated Coinbase Institutional.

The firm anticipates the contract going live on April 21.

According to the certification filing, the XRP (XRP) futures contract will be a monthly cash-settled and margined contract trading on the Coinbase Derivatives exchange under the symbol XRL. The contract will track the price of XRP and is paid out in US dollars. Each contract will represent 10,000 XRP.

The contract will be subject to a 10% trading increment and a minimum price fluctuation (tick size) of $25. A trading pause will be applied if the spot XRP price changes by more than 10% within an hour.

“The exchange has spoken with FCMs (Futures Commission Merchants) and market participants who support the decision to launch a XRP contract,” the firm stated.

Coinbase is not the first to launch XRP futures in the US. In March, Chicago-based crypto exchange Bitnomial announced the launch of the “first-ever CFTC-regulated XRP futures in the US.”

XRP futures trading is available on many of the world’s leading centralized crypto exchanges, such as Binance, OKX, Bybit and BitMEX.

Funding rates remain negative

In late March, Cointelegraph reported that XRP derivatives’ funding rates had flipped negative as investor sentiment turned bleak.

Funding rates are periodic payments between traders in perpetual futures markets that help keep the futures price in alignment with the spot price. Positive funding rates mean that long traders (buyers) pay short traders, and negative funding rates mean short traders (sellers) pay long traders.

When funding rates go negative, it means short traders are willing to pay a premium to maintain their positions, which signals strong conviction from bearish derivatives traders.

XRP funding rates remained negative on major derivatives exchanges as of April 4, according to crypto analytics platform CoinGlass.

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