XRP Price Declines Despite Coinbase Filing with CFTC to Launch XRP Futures Contracts
US-based crypto exchange Coinbase filed with the Commodity
Futures Trading Commission (CFTC) to launch futures contracts for Ripple’s XRP
token yesterday (Thursday).
The move could have fuelled XRP’s price to surge. However,
XRPUSD’s H1 chart indicates a bearish trend, with the price declining after a
rejection at intraday resistance. A bearish engulfing candle suggests a
continuation of the downside momentum.
Coinbase Plans Cash-Settled XRP Futures
The filing states that Coinbase intends to introduce a
monthly cash-settled and margined contract, traded under the symbol XRL, with
each contract representing 10,000 XRP, valued at approximately $20,000 at $2
per token. The contract is expected to go live on April 21.
Coinbase’s filing outlines that the XRP futures contract
will track XRP’s price and be settled in US dollars. Trading will be paused if
spot XRP prices fluctuate more than 10% in one hour.
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
Bitnomial First to Offer XRP Futures
While Coinbase’s announcement marks a significant step, it
is not the first exchange to offer XRP futures in the US. In March, Bitnomial,
a Chicago-based exchange, introduced the first CFTC-regulated XRP futures.
Other major exchanges, including Binance, OKX, Bybit, and BitMEX, already offer
XRP futures trading.
Coinbase mentioned that it had consulted with Futures
Commission Merchants (FCMs) and market participants who support the launch of
this contract.
Ripple Gains Attention Amid Regulatory, Strategic, and DeFi
Developments
Ripple has gained attention due to recent developments.
Michael Saylor, Executive Chairman of Strategy, discussed cryptocurrencies in
US strategic reserves after President Trump’s executive order, which listed
Bitcoin, Ethereum, XRP, Solana, and Cardano. Saylor
suggested XRP should be regulated.
Ripple’s
CEO Garlinghouse and CLO Alderoty met President-elect Trump on January 6,
sparking speculation about the SEC’s 2020 lawsuit over XRP’s status as an
unregistered security.
Great dinner last night with @realDonaldTrump & @s_alderoty. Strong start to 2025! pic.twitter.com/UjM6lahUG4
— Brad Garlinghouse (@bgarlinghouse) January 8, 2025
Ripple
has expanded partnerships with Revolut and Zero Hash, aiming to compete
with USDT and USDC. In Portugal, Ripple works with Unicâmbio for instant
payments between Portugal and Brazil using digital assets.
In South Korea, BDACS
will use Ripple Custody to secure XRP and RLUSD, while Ripple donated
$100,000 in XRP for California wildfire relief. Ripple expects Japanese banks
to adopt XRP Ledger by 2025 for cross-border payments.
In DeFi, Ripple collaborates with Chainlink to integrate
RLUSD into Ethereum platforms. Investor interest remains strong, with whales
purchasing 520 million tokens during a recent dip.
This article was written by Tareq Sikder at www.financemagnates.com.