Coinbase offers USDC pre-IPO perps for SpaceX

Coinbase has launched USDC-settled pre-IPO perpetual futures tied to SpaceX ahead of the company's expected initial public offering (IPO) next week at an estimated $1.8 trillion valuation. The contracts trade around the clock, have no expiry and will automatically convert into Coinbase’s standard perpetual futures if SpaceX lists publicly.

The contracts are settled in USD Coin (USDC) and require no rollovers. Leverage for the SpaceX pre-IPO perpetuals is capped at 5x. For context, Coinbase’s standard stock perpetual futures offer up to 10x leverage and its ETF perpetual futures offer up to 20x.

Access to the new product is restricted to eligible Coinbase Advanced users in supported jurisdictions. The company said the contracts are not available in the United States, Canada, the United Kingdom, Singapore, India, Australia and other restricted markets. U.S. clients continue to have access to CFTC-regulated perpetual-style futures through Coinbase Derivatives Exchange. Coinbase Financial Markets recently received CFTC registration as a futures commission merchant to support institutional access to global crypto perpetual futures and options.

Pre-IPO perpetual futures have expanded across crypto derivatives platforms in recent weeks, giving retail and institutional traders a way to take positions on private companies before a listing. These derivative contracts do not convey equity, voting rights or any direct claim on a company’s shares.

Coinbase issued a risk notice for the product, warning that “pre-IPO perpetual futures significantly differ from standard perpetual futures, carrying unique considerations and posing elevated risks.” The company highlighted valuation-based index pricing, IPO conversion risk, thinner liquidity, higher volatility and greater potential for rapid liquidations.

Operational and market-data issues have affected similar contracts elsewhere. A recent external price oracle error on another exchange briefly pushed a SpaceX contract down roughly 45%, triggering liquidations for some traders; that platform later compensated affected users and reviewed its pricing systems.

Coinbase described the SpaceX contract as the first offering in a planned series of pre-IPO perpetuals that will cover technology, artificial intelligence, energy and space sectors as more companies approach potential listings.