Coinbase has launched a new derivatives product that allows eligible users outside the US to trade changes in a company's valuation before it goes public. The first listed asset is SpaceX, with contracts settled in USDC, available for trading 24/7, and with no expiration date.

The first target is SpaceX

This product was announced by Coinbase CEO Brian Armstrong. According to the platform, the pre-listing perpetual contracts are open to institutional and retail users, but participation is limited to eligible non-US users.

Unlike traditional private equity markets, these products provide exposure through crypto trading infrastructure, allowing users to trade on valuation changes without directly holding shares in unlisted companies.

Contracts are settled in USDC.

Coinbase stated that the contracts will be settled in USDC and will be available 24/7. Because the product uses perpetual contracts, there will be no fixed expiration date.

This design follows the common mechanisms of the crypto derivatives market and makes transactions related to unlisted companies closer to the product structures familiar to on-chain and crypto platform users.

Automatic switching after listing

According to Coinbase's arrangements, once the relevant company completes its initial public offering (IPO), users' positions will be automatically converted into standard perpetual contracts. This allows the product to continue trading even after the company has entered the public market from its pre-IPO stage.

Coinbase's launch of this new product signifies its attempt to bring private market valuation trading into the crypto arena, expanding the ways users can access pricing of non-publicly traded assets through crypto platforms.