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Coinbase makes a new entry into Canada's crypto derivatives market

Coinbase has launched crypto derivatives trading in Canada for customers who meet eligibility requirements. With the new service, users can access perpetual contracts and futures tied to Bitcoin, Ether, Solana and several other assets. The company is offering these products through Coinbase Financial Markets, a futures commission merchant registered with the US Commodity Futures Trading Commission.

According to the company, its Canadian operations are being carried out under foreign dealer and futures commission merchant exemptions. Coinbase also said it is the first major crypto-focused platform to directly offer local crypto futures in Canada.

What products are available?

The new package includes 23 crypto perpetual and futures contracts, five commodity futures and the Coinbase 50 Index. The contracts are structured with nano-sized positions, allowing access to the market with smaller trade sizes.

  • Perpetual contracts linked to Bitcoin, Ether and Solana
  • Dated futures contracts and commodity futures
  • Broader market exposure through the Coinbase 50 Index

The company said the contracts offer up to 10 times leverage. Access is not open to all investors; eligible Canadian customers are limited to those with at least $5 million in net financial assets, as well as registered investment advisers and dealers.

Why is Canada an important market?

Coinbase's move comes as US-based trading platforms expand their crypto operations in Canada. Earlier this week, Webull began offering crypto trading to Canadian customers using Coinbase for its trading and custody infrastructure.

Webull pointed to growing adoption as one of the reasons for the expansion. According to an Ontario Securities Commission survey, crypto ownership in Canada rose from 10% in 2023 to 25% this year.

Robinhood move intensifies competition

Robinhood also entered the Canadian market in June by acquiring local crypto company WonderFi for $180 million. The deal gave the company control of the Bitbuy and Coinsquare exchanges, along with about 300,000 funded customers and WonderFi's Canadian licences and regulatory approvals.

Regulatory backdrop is tightening

As platforms move into the country, Canada is increasing oversight in other parts of the crypto market. In April, the government in Ottawa proposed banning crypto ATMs over concerns about fraud and money laundering.

Lawmakers are also advancing a rule that would prohibit political parties and candidates from accepting crypto donations. The picture suggests that while demand is growing in Canada, the market continues to develop under tighter rules.

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