Coinbase Institutional is signaling a significant shift in how mainstream retail traders might access financial markets by positioning stock perpetual futures (perps) as the next major trading vehicle.
In a post on X, David Duong, Coinbase Institutional’s global head of investment research, says that perps have evolved past simply being “isolated, high-leverage trading vehicles and are becoming core, composable primitives within DeFi markets.”
Perps – popularized by Arthur Hayes and BitMEX in 2016 – allow traders to maintain leveraged positions without fixed expirations and trade around the clock.
Duong says that the integration of perps with defi lending protocols could allow for broader strategies, such as “hedge layers for liquidity pools, serving as the basis for interest rate products, or acting as collateral in lending protocols with variable risk parameters.”
The analyst also says that perps will likely be integrated with the stock market, marking a massive development for the retail trading arena.
“We see a powerful confluence of factors positioning equity perpetual futures as the next major retail trading vehicle. As global retail participation in U.S. equities continues its secular rise, the market is poised for disruption by tokenized equities. Combining the 24/7 accessibility, censorship-resistance, and capital efficiency of crypto derivatives with the high demand for exposure to major global stocks (like those on the S&P 500 or Nasdaq), equity perps could become the preferred choice for a new generation of global retail traders seeking highly leveraged, low-friction access to traditional financial markets. These innovative derivatives are expected to transform how equities are traded outside of conventional market hours, specifically during weekends and nights.
In essence, perps are moving from the periphery of crypto trading to the core of composable DeFi, while simultaneously preparing to onboard a massive new wave of global retail capital seeking exposure to traditional assets in a more efficient way.”
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