XRP Futures to Hit Coinbase After Regulatory Win

by

Coinbase’s XRP Futures: The Rollercoaster Ride You Didn’t Know You Needed! 🎢💰

  • Coinbase’s XRP futures contract, worth $20,000, launches April 21, tracking the token’s price in USD.
  • A court ruling cleared XRP as a non-security, paving the way for its return to regulated markets.
  • The futures build on Coinbase’s Solana and Hedera offerings, expanding crypto trading options.

So, here we are, folks. Coinbase Derivatives is throwing its hat in the ring with a proposal to the U.S. Commodity Futures Trading Commission (CFTC) to list futures contracts for Ripple’s XRP token. And guess what? They’re launching this circus on April 21st. Just in time for tax season! 🎉

A New Trading Structure is About To Launch

The XRP futures contract symbol is XRL. Each month, it’ll be settled in cash. You know, because who doesn’t love cash? Each contract has a unit size of 10,000 XRP. So, if XRP is $2 at the exchange, each contract is worth $20,000. Simple math, right? But wait, if the spot price of XRP changes by more than 10% in an hour, trading pauses. Because, you know, we can’t have any excitement around here! 🙄

XRP’s journey has been like a bad soap opera, full of drama and SEC scrutiny. Back in 2020, the SEC decided to sue Ripple Labs because apparently, XRP was an unregistered security. But then, Judge Torres swoops in and says, “Nah, it’s not a security.” So, XRP is back on exchanges like Coinbase. What a plot twist! 📺

Coinbase’s Original Belief about XRP

In January 2019, Coinbase told the SEC it didn’t think XRP was a security. They had a whole team of fancy lawyers drafting that up long before the court’s ruling. Now, they’re finally listing XRP in their futures product offerings. Consistency is key, right? They’ve also listed futures contracts on Solana (SOL) and Hedera (HBAR). Because why not throw more crypto into the mix? 🤷‍♂️

With the XRP futures contract, traders can dip their toes into crypto without actually holding the asset. It’s like going to a buffet and just looking at the food. You get the experience without the calories! 🍽️

Self-Certification Streamlines the Process

If the regulators don’t throw a fit, Coinbase can self-certify compliance for its futures contracts. It’s like saying, “Trust me, I’m a professional!” The contract is designed to track the price of XRP, with settlement in US dollars. Because who doesn’t want to keep it efficient? 💸

In the Ripple case, over 75,000 XRP holders jumped in as amici to show their support. It’s like a big group hug for XRP. After the first ruling, XRP returned to major exchanges. And now, Coinbase is signaling it wants to make XRP a regular at the trading table. How sweet! 🥳

Conclusion

Coinbase’s proposed launch of XRP futures on April 21 is a big deal for XRP. It’s all about market demand and regulatory clarity. So, get ready to expand those trading options and solidify XRP as an established digital asset. Because who doesn’t love a little more chaos in their investment portfolio? 😅

Read More

2025-04-04 15:12