Coinbase Expands Into Pre-IPO Stock Trading and Bitcoin-Backed Mortgages

Key Insights

• Coinbase launches pre-IPO stock perps for eligible users outside the US, starting with SpaceX.
• The new product further expands its derivatives product as the perps market sees massive growth.
• The exchange also funded the first mortgage that used Bitcoin as collateral, as it aims to become an all-in-one app goal

Coinbase has expanded its derivatives business with the launch of pre-IPO perpetual futures contracts, allowing eligible users outside the United States to gain exposure to private companies before they enter public markets.

The exchange announced that SpaceX will be the first company available through the new offering. The launch comes as investor interest in private technology firms continues growing ahead of several anticipated public listings. SpaceX remains one of the most closely watched candidates, with reports suggesting a valuation approaching $1.8 trillion ahead of a potential public debut.

The move marks another step in Coinbase’s strategy to broaden its product lineup beyond traditional cryptocurrency trading.

Coinbase Pre-IPO Perps Expands Its Derivatives Offering

According to Coinbase, the perps will be settled in USDC and will be available for 24/7 trading. The exchange is offering the product through Coinbase Advanced, which is licensed by the Bermuda Monetary Authority (BMA).

The Coinbase announcement stated that the pre-IPO perps will have no expiry or rollover, and that there is up to 5x leverage. However, it added that the products carry higher risks than standard perps.

While SpaceX might be the first, the exchange is planning to roll out more Pre-IPO perps for users. These pre-IPO perp contracts will automatically convert to regular perp contracts when the IPOs finally occur.

However, the product will be available only to users outside the US in eligible jurisdictions. Several countries, such as Canada, the UK, Singapore, India, and Australia, are not eligible.

With the launch of pre-IPO perps, Coinbase further expands its product offerings, especially in derivatives trading. The crypto exchange already offers perps on crypto, equities, and commodities for eligible users outside the US.

The Coinbase Derivatives Exchange also offers regulated futures in the US. The exchange, through its Coinbase Financial Market, also recently received a commodities futures trading commission approval to connect institutional US customers to the global crypto perpetuals and options market.

With its pre-IPO perps, Coinbase joins an increasingly competitive market. Hyperliquid-based TraderXYZ, as well as crypto exchanges such as Binance, Crypto.com, Bitget, and OKX, all launched similar products in recent weeks.

Coinbase Targets Financial Superapp, Funds First Bitcoin-Backed Mortgage

Interestingly, Coinbase’s ambition extends beyond derivatives. The exchange aims to become an everything app for financial products and has been busy making progress towards this goal.

Only a few days ago, it announced investments in the ProShares Stablecoin reserves ETF. The exchange also partnered with Ethena to integrate onchain finance products.

Today, it took that a step further by completing the first-ever Bitcoin-backed mortgage. The exchange stated that it partnered with home finance company Better to fund the Fannie Mae mortgage for a couple in Michigan

It is now planning to expand access to more users by the summer. Qualified borrowers can use USDC or Bitcoin as collateral for a mortgage, and plans are in place to allow more crypto assets as the market matures.

The post Coinbase Expands Into Pre-IPO Stock Trading and Bitcoin-Backed Mortgages appeared first on The Market Periodical.