Key facts
- Coinbase International Exchange launched pre-IPO perpetual futures contracts.
- The first contract is based on SpaceX's estimated pre-listing valuation.
- Contracts are USDC-settled and allow 24/7 trading.
- Positions will transition to post-IPO contracts upon a future SpaceX IPO.
- The product is available to users outside the United States.
Coinbase International Exchange has introduced pre-IPO perpetual futures contracts, beginning with SpaceX. This new offering allows users outside the United States to gain exposure to private companies before they become publicly traded. The contract is a USDC-settled perpetual futures contract that tracks SpaceX's estimated pre-listing valuation. It enables continuous 24/7 trading without an expiry date or rollover, with profits and losses settled in USDC. Positions can be opened and closed at any time, similar to existing perpetual futures. Upon a future initial public offering (IPO) of SpaceX, existing positions will automatically convert into a post-IPO perpetual futures contract referencing the public listing. Coinbase CEO Brian Armstrong stated that these contracts help with price discovery for private companies. The product is not available to US users. More pre-IPO listings are expected soon in technology, AI, energy, and space sectors. This launch coincides with reports about SpaceX's potential IPO price, which could make Elon Musk a trillionaire, with an IPO targeted for June 12.