Coinbase derivatives seeks CFTC approval for XRP futures contracts

Coinbase Derivatives has officially filed with the U.S. Commodity Futures Trading Commission (CFTC) to self-certify futures contracts for XRP, the digital asset associated with Ripple. 

The new contracts, pending regulatory approval, are expected to be available to institutional and retail traders on April 21, 2025, offering a regulated option for investors seeking exposure to one of the most liquid digital assets.

We’re excited to announce that Coinbase Derivatives has filed with the CFTC to self-certify $XRP futures – bringing a regulated, capital-efficient way to gain exposure to one of the most liquid digital assets.

We anticipate the contract going live on April 21, 2025.

Stay tuned… pic.twitter.com/nKUPjjnMKW

— Coinbase Institutional 🛡️ (@CoinbaseInsto) April 3, 2025

The filing significantly develops XRP’s broader market acceptance, especially in regulated environments where futures contracts provide risk management opportunities.

Coinbase and Kraken expand XRP access amid regulatory hurdles

Self-certification enables Coinbase Derivatives to launch XRP futures contracts without direct approval by the CFTC as long as the contracts align with existing regulatory frameworks. Such a strategy is typically used by U.S.-regulated exchanges when introducing new futures products.

The introduction of XRP futures on a regulated platform will likely improve market liquidity and provide investors with a capital-efficient way to hedge positions or take directional bets on the direction of XRP. Such an event might drive higher-level investor interest in XRP. 

Futures contracts are useful for hedging or speculation, and they can make XRP more accessible to new investors.

Concurrently, one of the largest US-based crypto exchanges, Kraken, incorporated Ripple USD (RLUSD) among cryptocurrencies traded on the platform. Before that list, RLUSD was available only on Bitstamp exchange. The integration of Kraken into the list of XRP trading platforms increases trading volume in the asset and deepens the pool of institutional actors interacting with the asset.

The Coinbase announcement comes as the community braces for the SEC’s response to the XRP settlement.

The asset has remained a strong market presence, ranking as the fourth-largest cryptocurrency behind Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) by market capitalization.

Prediction markets signal XRP volatility, with majority betting on a break above $3 by 2025

According to a prediction market on the betting platform Kalshi, XRP has a 48% chance of breaking its $3.40 all-time high in 2025 and trading at $4. Traders also give XRP a 35% chance of breaking the $3.50 barrier.

While long-term sentiment around the coin has been optimistic, XRP has come under pressure in the short term. After a 500% jump in the run-up to the U.S. presidential election and Donald Trump’s inauguration in January, the token has fallen about 36% in value since then. Now, XRP is trading at about $2—nearly 9% lower in the past 24 hours and about 16% down in the last 30 days, as per the data by CoinGecko.

The sentiment based on the short term is cautious. On the betting site Polymarket, traders see only a 1% chance that XRP will be priced above $2.30 by Friday. On the same platform, traders are placing only a 3% probability that the token will hit a new all-time high this month, though 40% of them think it will close the month higher than at the start.

Even in the longer term, Polymarket gamblers assign XRP a 7% probability of hitting a new all-time high before July and 29% before the end of 2025. On the downside, Kalshi traders see an 80% chance that XRP will fall below $2 at some point this year, a sign of continuing market uncertainty.

Coinbase sparks controversy and institutional interest with XRP futures filing

Amid this volatile outlook, Coinbase Derivatives’ recent filing with the U.S. Commodity Futures Trading Commission (CFTC) to launch XRP futures has made headlines—and stirred debate within the crypto community.

The controversy started with Coinbase’s use of the term “Ripple futures” in a now-deleted tweet to describe the product. This has caused backlash from XRP holders, who have drawn attention to the confusion between the private company Ripple, which controls the XRP Ledger, and the token itself.

A user named Adam on X was able to differentiate the two and wrote to Coinbase asking them to edit the terms. In his response, he stressed that one should differentiate between Ripple and XRP by stating that “Ripple is a private company while XRP is its digital asset,” he said. Coinbase immediately amended the error and confirmed that it is actually offering XRP futures.

Coinbase’s filing isn’t the only sign of increasing institutional appetite for XRP derivatives. In fact, just last month, the Crypto Options and Futures Exchange Bitnomial expressed its intention to create XRP futures contracts. The product has reportedly been in development since October 2024.