The U.S. Securities and Exchange Commission (SEC) approved a rule change allowing Cboe to list binary options tied to key performance indicators (KPIs) for 23 companies, including Coinbase. The contracts let investors take positions on company-reported data rather than stock prices.
Traders can place yes-or-no bets on whether Coinbase metrics, including total trading volume and transaction revenue, will meet predefined targets. The contracts will be cash-settled and will not directly track the price of Bitcoin or other cryptocurrencies.
The new products will trade on a regulated securities exchange under existing investor protection rules.