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Coinbase, a crytpo exchange, is trying to offer new products as the market for digital assets declines.
Michael Nagle/Bloomberg
Coinbase
,
the exchange for cryptocurrencies, is launching a derivatives product next week in the midst of a meltdown in the market for digital assets.
Coinbase
Derivatives Exchange, will launch Nano bitcoin futures, its first listed product, on June 27. It will allow investors to buy contracts tied to the future value of one hundredth of a bitcoin. It will be accessible through third-party retail brokers and clearing firms.
Bitcoin prices have been trading around the psychologically important level of $20,000 this week after falling to the lowest since 2020 last week. The oldest and largest cryptocurrency has lost about 55% of its value this year. The total value of the cryptocurrency market is now below $1 trillion after peaking at $3 trillion in November.
Moody’s downgraded Coinbase’s (ticker: COIN) corporate debt and placed it under review on Thursday on concerns about revenue and cash flow after the crypto crash of the past few months. The company had $2 billion in senior guaranteed notes due in 2028 and 2031.
The collapse of digital assets has hurt the institutions around it. Lender Celsius Networks halted withdrawals and other transactions last week. Hedge fund Three Arrows Capital said it had suffered large losses and was considering asset sales or a bailout.
Coinbase Financial Markets is still awaiting approval from authorities to operate as a futures commission merchant, which would allow it to offer products directly to investors.
Write to brian.swint@dowjones.com