Coinbase rolls out derivatives for UK professional investors

Coinbase announced the launch of a suite of derivatives products for professional investors in the UK, expanding its derivatives offering as it advances its broader "Everything Exchange" strategy.

The exchange is rolling out perpetuals, dated futures, and crypto options to eligible UK professional clients, with access beginning progressively over the coming weeks, it said in a statement shared with The Block Tuesday.

According to the statement, the offering covers more than 170 contracts across crypto, commodities, equities, and foreign exchange, with perpetuals available around the clock and leverage of up to 50x.

Dated futures will offer fixed settlement dates and leverage of up to 20x, while the options offering will be limited to crypto and include calls, puts, and multi-leg strategies, the exchange said.

The launch follows Coinbase's recently announced MiFID license, which the company said enables it to offer derivatives contracts in the UK. Access is limited to investors who meet the eligibility requirements and are classified as professional clients.

The rollout also adds another product category to Coinbase's broader "Everything Exchange" strategy in the UK. The company has been expanding its product lineup beyond crypto trading to include equities, stablecoins, savings, and borrowing products.

Last week, the exchange began rolling out access to nearly 4,000 U.S. stocks for eligible UK users, adding equities trading alongside crypto and fiat holdings. 

The derivatives rollout also comes as Coinbase has been expanding revenue sources beyond bitcoin spot trading. In its second-quarter report, Coinbase said 88% of its net revenue came from sources other than bitcoin spot trading, while its global crypto trading volume share reached a record 10.3%, up from 9.1% in the first quarter.

The company's UK expansion has followed its recently secured MiFID license, which Coinbase said expanded its permissions to offer more products, including derivatives for professional traders and equities for retail investors.

Coinbase describes itself as "the most comprehensively regulated crypto player" in the UK market. Its UK regulatory disclosures state that its subsidiary, CB Payments Ltd, is authorized and regulated by the Financial Conduct Authority for investment services and is also authorized under the Electronic Money Regulations 2011 for issuing electronic money.