US Perpetual-Style Futures: revolution for the market

US Perpetual-Style Futures will represent a decisive turning point for the landscape of US financial derivatives.

From July 21, Coinbase Derivatives will launch these innovative instruments, offering American operators the opportunity to trade long-term futures, with the advantage of a close adherence to spot prices and the use of leverage.

This launch marks a turning point in a sector, that of derivatives, historically limited by rigid rules and a less flexible structure compared to that of other global markets.

Distinctive Characteristics of US Perpetual-Style Futures

The US Perpetual-Style Futures will be the first instruments of their kind in the United States, filling a significant gap in the domestic derivatives sector.

Additionally, they will be products in full compliance with CFTC regulations, thus ensuring high regulatory security for investors.

• Long-term expiration: each contract has a five-year expiration, offering greater flexibility compared to traditional short-term futures.
• Continuous trading: the ability to trade 24/7 brings the trading experience closer to that of the most liquid spot markets, reducing the typical interruptions of traditional markets.
• Leverage: traders will be able to use leverage to increase their exposure, while still maintaining a transparent and regulated view on the positions taken.

These specifications meet the needs of an audience of users increasingly attentive to efficiency, transparency, and the ability to adapt to market movements.

One of the key elements of US Perpetual-Style Futures is the funding rate system. This mechanism allows the futures prices to remain very precisely aligned with the reference spot prices, thus reducing the distortions between theoretical value and actual market value.

The funding rate accumulates on an hourly basis and is settled twice a day through cash settlement.

At each adjustment period, the accrued funding amount is consolidated and then directly credited or debited to the traders’ accounts.

This allows participants to keep track of costs and profits while benefiting from a market that always reflects the real price dynamics.

• Proximity to spot prices: continuous adjustment ensures consistency between futures and real prices.
• Clarity in financing costs: each operator can verify, at each period, how much they have paid or earned in terms of funding.

In this way, a trading experience is created similar to the direct purchase of the asset, but with all the advantages related to regulation and leverage.

Why these futures are different from traditional contracts

The US Perpetual-Style Futures are distinctly different from traditional US futures in several fundamental aspects. One of the main differentiating elements concerns the expiration structure.

While conventional futures have a predetermined expiration date, after which the contract is settled or must be renewed, these new instruments are designed to remain “perpetual,” with a duration extended up to five years.

Another point concerns the connection with the spot market. Traditional US futures often exhibit significant misalignments compared to spot prices in the periods between one expiration and the next.

In contrast, the funding rate adopted in these new contracts persists throughout the life of the derivative, ensuring that prices remain constantly aligned with those of the underlying instrument.

Access to US Perpetual-Style Futures will be gradually expanded. Coinbase Derivatives plans an initial rollout on partner platforms. As a result, the retail public will be able to benefit from these innovations in the months following the launch.

The operational details on how to trade these new futures will be disclosed directly through the official channels of the selected partners.

This process will ensure transparency and support for operators during the adoption phase, promoting an orderly evolution of the market towards these instruments.

• Greater accessibility: the ultimate goal is to make the products available not only to professional operators, but also to retail investors.
• Efficiency and innovation: the introduction of regulated perpetual futures brings dynamism and new standards to the USA derivatives sector.

This move is therefore configured as a decisive step to democratize access to risk management strategies even in the retail sector, in line with the latest evolutions of the global markets.

Impact on the derivatives market: future prospects and opportunities

The introduction of US Perpetual-Style Futures by Coinbase Derivatives represents a concrete opportunity to modernize the derivatives system in the United States.

The combination of extended expirations, continuous trading, and funding rate offers more advanced solutions for those who need efficient, flexible products consistent with real market prices.

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Furthermore, the scrupulous compliance with CFTC standards ensures strong protection for operators, encouraging participation even from institutional investors who are most attentive to regulatory security.

The spread of these futures, combined with the growing interest from the retail public, could mark a new era for the entire U.S. derivatives ecosystem.
Looking to the near future, it will be essential to closely monitor the adoption of these products and understand the actual impact on risk access, portfolio management, and market participation methods.

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For those who already operate or intend to approach regulated derivatives in the U.S. context, these products represent a solid opportunity to explore and follow step by step.