Coinbase has announced the expansion of its derivatives offerings with the introduction of Solana futures contracts through its subsidiary platform, Coinbase Derivatives.
Details of the New Contracts
According to a January 30 filing with the U.S. Commodity Futures Trading Commission, Solana futures will be available starting February 18, 2025. The offering will feature two contract sizes: a standard contract covering 100 SOL and "nano" contracts representing 5 SOL each. Both options will be cash-settled on a monthly basis.
Risk Management Strategy
As part of its risk management strategy, Coinbase Derivatives revealed that position limits for Solana futures will be set 30% lower than those for its Bitcoin futures. The platform cited Solana’s relatively higher volatility compared to Bitcoin and Ethereum, with a 30-day volatility of 3.9%.
Context and Infrastructure Challenges
The launch of Solana futures follows recent technical issues faced by Coinbase users. CEO Brian Armstrong previously apologized for transaction delays and cancellations related to Solana, caused by infrastructure challenges during a surge in Solana activity.
The launch of Solana futures contracts by Coinbase marks a strategic expansion amid the continued growth and adoption of cryptocurrency assets.
