Coinbase Embraces Institutional Demand with Ordinals and Worldcoin Perpetual Futures

Coinbase Worldwide Trade will soon offer institutional clients access to perpetual futures for the BRC-20 token Ordinals (ORDI) and Worldcoin (WLD) on April 11. ORDI has seen significant price movement and trading volume recently, while WLD has emerged as a popular token for exposure to the AI sector. Coinbase's decision to list these futures contracts adds to its growing suite of perpetual futures offerings, which have recently included Wormhole's (W) token, Litecoin (LTC), and Dogecoin (DOGE).

Coinbase Embraces Institutional Demand for Ordinals and Worldcoin Perpetual Futures

Institutional clients on Coinbase Worldwide Trade will soon gain access to Ordinals (ORDI) and Worldcoin (WLD) perpetual futures. In a significant announcement on April 5, Coinbase Worldwide Commerce revealed that it will list perpetual futures contracts for Ordinals (ORDI) and Worldcoin (WLD) from April 11 onwards, making them available to institutional traders on both Coinbase Worldwide and Coinbase Prime.

Surging Popularity Drives Institutional Interest

Both ORDI and WLD have witnessed remarkable price movements and trading volumes in recent months. ORDI soared by 1,640% from a price of $5 on November 1, 2023, to a high of $87 on March 5, as a frenzy for Ordinals-related assets took off late last year.

Ordinals (ORDI) is a BRC-20 token that is distinct from the Bitcoin Ordinals deployer or any affiliated group. Its namesake is derived from the popular Ordinals protocol.

Meanwhile, Worldcoin has emerged as one of the leading tokens for crypto traders seeking exposure to the AI industry. Its price surged from $2.20 on February 7 to a peak of $11.70 on March 10, according to CoinGecko data.

Worldcoin's Biometric Identity Innovation

Worldcoin's native token, WLD, is the cornerstone of a digital identity project that offers cryptocurrency in exchange for users minting their biometric data to create a digital ID. This innovative approach has garnered significant interest in the market.

Regulatory Landscape and Coinbase's Approach

The announcement of these perpetual futures contracts adds to the growing list of available products on Coinbase Institutional-targeted trade. Perpetual futures, also known as perpetual swaps or perpetuals, are a type of derivative contract that allows traders to speculate on the future price of an asset without an expiration date. The regulatory approval process for perpetuals can vary depending on the product offering.

On April 4, Coinbase Worldwide Trade introduced futures contracts for Wormhole's native (W) token, which was launched alongside an $850 million airdrop to early adopters of the cross-chain bridge.

Previously, on March 21, Coinbase quietly revealed plans to offer futures contracts for Litecoin (LTC) and the meme token Dogecoin (DOGE), stating that DOGE had "transcended its origins" as an online joke and established itself as a legitimate digital asset.

Coinbase has indicated that it will utilize the "self-certification" process to launch the futures contracts prior to receiving formal approval from the Commodity Futures Trading Commission (CFTC), as long as they adhere to the regulatory guidelines set forth by the agency.

Self-Certification and Regulatory Compliance

The self-certification process allows Coinbase to launch futures contracts without obtaining prior approval from the CFTC. However, the exchange must demonstrate that it has conducted a thorough due diligence process and that the products comply with applicable regulations.

Coinbase's decision to utilize self-certification highlights the company's commitment to providing institutional clients with timely access to innovative products, while adhering to established regulatory frameworks.

Conclusion

Coinbase's listing of Ordinals (ORDI) and Worldcoin (WLD) perpetual futures is a testament to the growing institutional demand for these assets. The exchange's self-certification process enables it to offer these products efficiently while maintaining regulatory compliance. As the crypto landscape continues to evolve, Coinbase is well-positioned to support the evolving needs of its institutional clientele.