Coinbase Expands Derivatives with CFTC-Regulated Solana and XRP Futures

Coinbase Derivatives, a subsidiary of the major U.S. cryptocurrency exchange Coinbase, has filed for self-certification with the Commodity Futures Trading Commission (CFTC) to launch regulated futures contracts for Solana (SOL). The standard Solana futures, representing 100 SOL, are scheduled to begin trading on February 18, 2025.

In a parallel and related expansion of its retail-focused offerings, Coinbase also announced the launch of "nano" perpetual futures contracts for both Solana and XRP. These smaller contracts, set to debut on August 18, 2025, are designed to be more accessible. The nano Solana contract will represent 5 SOL, while the nano XRP contract will cover 500 XRP tokens. Both are five-year, cash-settled instruments that will expire in December 2030.

The filing for standard Solana futures acknowledges the asset's higher volatility compared to Bitcoin and Ethereum. With Solana's 30-day volatility at approximately 3.9%, Coinbase has set position limits for these futures 30% lower than those for Bitcoin futures to manage risk. The contracts will be cash-settled monthly, with benchmark rates provided by MarketVector Indexes GmbH, bringing the product under additional oversight from Germany’s Federal Financial Supervisory Authority (BaFin).

This strategic move by Coinbase is seen as capitalizing on positive regulatory sentiment, including references to a recent executive order by U.S. President Donald Trump declaring crypto a "national priority." Analysts like Bitwise's CIO Matt Hougan suggest this environment could extend the current crypto market cycle. The expansion provides traders with new tools for speculation and hedging, while further integrating altcoins into the traditional financial framework through regulated derivatives.

Coinbase's derivatives push comes amid competition, with rival exchange Gemini also expanding its offerings by allowing a wider range of cryptocurrencies, including SOL and XRP, to be used as collateral for perpetual contracts on its platform.