Coinbase has introduced a suite of equity index perpetual futures covering artificial intelligence, defense, China, and technology sectors, broadening its derivatives lineup beyond cryptocurrency.
How perpetual futures work
Perpetual futures are derivative contracts that never expire. Unlike standard futures with fixed settlement dates, traders can hold positions indefinitely. A funding rate — paid every few hours between long and short holders — keeps the contract price anchored to the underlying index. The structure allows leveraged speculation without the need to roll over expiring contracts.
The new products track custom equity indices Coinbase created specifically for these four sectors. Each index represents a basket of publicly traded companies within its theme.
The four sector indices
The AI index includes firms focused on artificial intelligence development and deployment. The defense index covers major defense contractors. The China index tracks equities listed on Chinese exchanges or with significant China exposure. The tech index consists of large-cap technology stocks. Coinbase did not disclose the exact composition or rebalancing rules of the indices.
Traders can take long or short positions on the performance of each basket through a single contract, avoiding the need to buy or short individual stocks.
A shift toward traditional finance
Coinbase is best known as a cryptocurrency exchange, but it has been steadily expanding into conventional financial products. The company already offers crypto perpetuals and futures. Adding equity index perpetuals brings it closer to offerings found at traditional brokerage platforms, though the perpetual structure is more common in crypto markets.
The launch gives traders a way to bet on broad thematic trends — AI, defense, China, tech — using a single instrument. It also introduces the perpetual futures mechanism, which originated in crypto, to equity indices, a hybrid approach that may appeal to both crypto-native and traditional investors.
What's available now
The contracts are live on Coinbase's derivatives exchange. The company has not released details on margin requirements, contract sizes, or which jurisdictions can access the products. Eligible users can view the full specifications on the platform.
The success of these products will depend on whether enough traders provide liquidity and whether the indices gain traction as standalone benchmarks. No launch date for additional sector indices has been announced.
