Coinbase to Launch AI, China and Defense-Themed Perpetual Futures in Push Beyond Crypto

Coinbase, the US cryptocurrency exchange, plans to launch thematic perpetual futures tied to artificial intelligence, China and the US national security industry. The move is part of the company’s broader push into derivatives linked to traditional financial markets.

The Block reported on May 22 that Coinbase will roll out futures based on AI, defense and China-related thematic indexes alongside its Tech 100, or TEK, contract, which tracks the top 100 companies on the Nasdaq.

The products are set to begin trading on June 8 on Coinbase’s derivatives platform under the supervision of the Commodity Futures Trading Commission. Coinbase said the contracts use a funding-rate mechanism in a “perpetual-style” structure designed to track the underlying index.

The contracts are based on existing indexes from MarketVector. The AI10 index includes companies with significant exposure to AI infrastructure, data and applications, including Nvidia, Microsoft, Amazon, Alphabet, Meta, Oracle and Palantir.

The China 10, or CHN, contract tracks American depositary receipts of US-listed Chinese companies such as Alibaba, Baidu and JD.com. The Defense 10 index is composed of major US companies tied to national security and the defense industry.

Some companies are included in more than one index. Alibaba appears in both the AI and China indexes, while Palantir is included in both the AI and defense indexes, the report said.

Coinbase has been rapidly expanding its traditional finance-linked derivatives business. After launching some crypto-based perpetual products in July last year, it introduced futures tied to major US technology stocks including Apple, Microsoft, Nvidia and Tesla in March.

It has also launched a Magnificent 7 + Crypto Index Futures product that combines BlackRock’s spot Bitcoin and Ether ETFs with major US technology stocks.