Coinbase has launched pre-IPO perpetual contracts, a new derivative product category that lets traders gain exposure to private companies before they go public. The first contract is linked to SpaceX.
The product is available through Coinbase’s international exchange, which hosts the exchange’s derivatives offerings for eligible users outside the United States. Pre-IPO perpetuals function like standard perpetual futures contracts, but instead of tracking a cryptocurrency, they reference the estimated valuation of a private company.
How the SpaceX perpetual contract works
The SpaceX-linked contract appears on Coinbase’s derivatives trading platform as part of its perpetuals lineup. Perpetual contracts have no expiration date, allowing traders to hold long or short positions indefinitely while paying or receiving periodic funding rates.
In this case, the contract gives traders a way to speculate on SpaceX’s valuation without owning private shares. SpaceX is one of the most highly valued private companies in the world, and access to its equity has historically been limited to venture capital firms, institutional investors, and select secondary market platforms.
By choosing SpaceX as the debut listing, Coinbase is anchoring the new product category to a company with immediate name recognition. The choice signals that the exchange is targeting traders who want exposure to high-profile private companies that are difficult to access through traditional channels.
What this means for Coinbase’s derivatives strategy
The launch positions Coinbase as one of the first major crypto exchanges to offer derivative exposure to private company valuations. This expands the exchange’s product lineup beyond standard crypto perpetuals and into a category that blends traditional finance concepts with crypto-native trading infrastructure.
The move comes as crypto exchanges increasingly compete on derivatives offerings. Kalshi, for example, recently launched its own U.S. Bitcoin perpetuals product, reflecting growing demand for derivative instruments across the digital asset space.
Pre-IPO perpetuals carry risks typical of derivative products, including leverage-related liquidation and the complexity of pricing assets that do not trade on public markets. The reference price for a private company like SpaceX depends on secondary market transactions and valuation estimates rather than a live public order book.
Starting with a single contract suggests Coinbase may expand the lineup to include other prominent private companies over time. The initial SpaceX listing functions as a test case for both market demand and the exchange’s pricing mechanism for this new asset class.
Coinbase has been broadening its institutional and trading-focused services in recent months, including efforts around stablecoin infrastructure partnerships and compliance enforcement actions. The pre-IPO perpetuals launch adds another layer to that expansion, moving the exchange further into structured financial products built on crypto rails.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
