Major Boost: Coinbase Expands Crypto Futures Collateral to 12 Assets

Are you involved in crypto futures trading? There’s a significant update from Coinbase International Exchange that could impact your strategy. Coinbase has announced the addition of support for 12 new digital assets to be used as collateral for trading perpetual futures.

What’s New with Coinbase Futures?

Coinbase International Exchange, the platform for derivatives trading, shared via social media that it will now accept a wider range of assets as collateral. This development allows traders to use more of their existing cryptocurrency holdings to margin their futures positions.

Previously, the options for collateral might have been limited. This expansion means traders have more flexibility in managing their capital when engaging with Coinbase futures products.

Understanding Coinbase Collateral and Futures

Collateral in futures trading is the amount of capital a trader must deposit to open and maintain a leveraged position. By accepting more assets as Coinbase collateral, the exchange makes it easier for holders of these specific cryptocurrencies to participate in the futures market without needing to first convert their assets into a different form of collateral, like USDC or Bitcoin.

Here are the 12 digital assets now supported:

• AAVE
• CRV
• NEAR
• APT
• ARB
• FIL
• ICP
• UNI
• OP
• VET
• INJ
• JASMY

How Does This Impact Perpetual Futures Trading?

Perpetual futures are a type of futures contract that does not have an expiry date. They are popular in cryptocurrency trading due to their flexibility and the ability to use leverage. With the addition of these 12 assets as collateral, traders who hold them can now use them directly to open and manage their leveraged perpetual futures positions on Coinbase International and Coinbase Advanced platforms.

This move can potentially increase liquidity and trading activity for the listed assets on the futures market, as it removes a barrier for some traders wanting to use them as margin.

The Significance of Expanding Digital Asset Collateral

Expanding the types of digital asset collateral accepted by an exchange is a step towards integrating more of the cryptocurrency market into derivatives trading. It acknowledges the value held in a broader range of cryptocurrencies beyond just the largest ones.

For traders, this means:

• Increased capital efficiency if they hold these specific assets.
• More options for margining positions.
• Potential for new trading strategies based on their portfolio composition.

This development highlights the ongoing evolution of cryptocurrency exchanges and the services they offer to meet the demands of derivatives traders.

Conclusion: More Options for Traders

Coinbase International Exchange’s decision to add 12 digital asset collateral options for crypto futures trading marks a positive expansion for users of the platform. By enabling traders to use assets like AAVE, UNI, and INJ directly as Coinbase collateral for perpetual futures, the exchange is providing more flexibility and potentially lowering the barrier to entry for leveraged trading positions on Coinbase futures.