Coinbase Institutional is signaling a significant shift in how mainstream retail traders could access the financial markets by positioning stock perpetual futures (perps) as the next big trading instrument.
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Perps – popularized by Arthur Hayes and BitMEX in 2016 – allow traders to hold leveraged positions without fixed expiry dates and trade around the clock.
Duong says integrating perpetrators with defi lending protocols could enable broader strategies, such as “hedge layers for liquidity pools, serving as the basis for interest rate products, or acting as collateral in credit protocols with variable risk parameters.”
The analyst also says that the perpetrators are likely to be integrated with the stock market, which will be a huge development for the retail trading arena.
“We see a powerful confluence of factors positioning perpetual equity futures as the next big retail trading vehicle. As global retail participation in US equities continues its secular rise, the market is primed for disruption from tokenized equities. Combining the 24/7 accessibility, censorship resistance and capital efficiency of crypto derivatives with the high demand for exposure to major global equities (such as those on the S&P 500 or Nasdaq), equity squeezes could become the preferred choice. for a new generation of global retail traders seeking high-leverage, low-friction access to traditional financial markets. These innovative derivatives are expected to change the way stocks are traded outside conventional market hours, particularly during weekends and nights.
Essentially, the perpetrators are moving from the periphery of crypto trading to the core of composable DeFi, while simultaneously preparing for a massive new wave of global retail capital seeking exposure to traditional assets more efficiently.”
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