Coinbase Derivatives, the derivatives division of the largest US-based cryptocurrency exchange, is set to launch retail-sized futures contracts for oil and gold. While cryptocurrency derivatives remain their main focus, Coinbase Derivatives aims to provide customers with enhanced trading opportunities in traditional markets by introducing commodities futures contracts.

Commodity futures contracts require buyers to purchase a specific commodity, such as oil, gold, or silver, at a predetermined future price and date. Investors use these contracts to hedge their investment positions and take advantage of price movements in the underlying asset.

According to Coinbase, the introduction of new futures contracts is a strategic move to offer diversified markets that facilitate price discovery and risk management. The Commodity Futures Trading Commission (CFTC)-registered exchange decided to offer these new commodity futures contracts in response to increased demand for retail-focused products on accessible and regulated exchanges.

The new contracts, which will be available from June 3rd, are designed to cater to both seasoned investors and retail enthusiasts. Coinbase believes that expanding its product suite to include futures on traditional commodities like oil and gold, alongside crypto commodities, is a natural progression. They anticipate that these contracts will mature and bring liquidity to both retail and institutional investors in a regulated manner.

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