Coinbase increases institutional access to Ripple by adding CFTC-approved contracts

After receiving approval from the US Commodity Futures Trading Commission (CFTC) on April 3, Coinbase has listed monthly XRP contracts settled in cash in US dollars. Each contract is valued at 10,000 XRP and allows margin trading through the exchange's derivatives. This product follows the launch of a similar contract by Bitnomial in mid-March.

The launch of the Coinbase contracts gives US entities another tool to manage the risk associated with XRP price movements. The product allows traders to hedge assets and arbitrage against other markets with no need for physical delivery. Since contracts are settled in cash, investors avoid the security concerns associated with transferring funds on the blockchain, as noted by experts at ETHNews.

The legal status of XRP in the US has recently become clearer. At the same time, the US administration has spoken in favor of more explicit rules for digital assets. This environment has opened the door for exchanges to conduct listings that require CFTC or SEC supervision.