Coinbase Launches New Crypto Futures Contracts for Silver (SLR) and Stellar (XLM)

Coinbase Derivatives' primary goal in launching new crypto futures contracts is to create markets that offer retail traders diversification

Coinbase Derivatives, a contract market registered with the Commodity Futures Trading Commission (CFTC), has announced the launch of new futures contracts for Silver (SLR) and Stellar (XLM) on November 11, 2024. These contracts will join the existing list of CFTC-regulated products, which includes futures for LTC, DOGE, SHIB, AVAX, DOT, LINK, Gold, BTC, ETH, BCH, and Oil.

Coinbase Derivatives allows users to trade and hedge the price of digital assets. These derivatives are contracts that derive their value from an underlying asset or commodity, enabling traders to gain exposure to an underlying asset without purchasing it.

According to Coinbase's official X account statement, the new futures contracts aim to create a comprehensive trading platform by combining traditional commodities like Silver with cryptocurrencies like Stellar. This approach seeks to diversify opportunities and help investors manage risk across different asset types.

Coinbase's futures contracts also support effective price discovery, assisting in establishing fair market prices and allowing traders to respond confidently to market shifts. Notably, the Stellar and Silver contracts are designed to increase market accessibility and are structured for retail-focused trading with smaller contract sizes.

Each Silver contract represents 50 troy ounces, while each Stellar Lumens contract is for 5,000 tokens. These retail-sized contracts aim to encourage a broader range of participation among retail traders who may be seeking affordable entry points into futures markets.

Coinbase is making a push into commodity markets with the addition of Silver as a new tradable asset. Silver futures provide users with a way to hedge against inflation or other economic changes, as silver tends to remain stable during market volatility.

Meanwhile, Stellar is a decentralized, open-source network that facilitates low-cost cross-border transactions between any pair of cryptocurrencies. The network also features an integrated decentralized exchange (DEX) that enables users to trade assets on the Stellar blockchain.

In addition to its capabilities for low-cost transactions, Stellar utilizes a unique system called the Stellar Consensus Protocol (SCP) to process transactions quickly and reliably compared to many traditional networks.

In related news, CNF reported on October 23 that Robinhood announced its support for Stellar on its official X account, allowing EU users to deposit and withdraw XLM on the Robinhood app. This move marks a significant development for both Robinhood and XLM, as the increased flexibility in handling the coin can benefit both ecosystems.

Despite a 1.94% dip in XLM's price to $0.0914 over the last 24 hours, trading volume rose by 10.74% to $54.29 million, indicating ongoing interest from investors in XLM's diverse use cases.