- Coinbase has been experiencing a variety of regulatory issues in the United States.
- Perpetual futures contracts for Bitcoin (BTC) and Ethereum (ETH) went live today.
The United States-based digital currencies exchange Coinbase has expanded internationally by opening a derivatives exchange in Bermuda. Coinbase has been experiencing a variety of regulatory issues in its native country of the United States, especially by the SEC. Thus, this change is timely.
Today Coinbase launched Coinbase International Exchange @CoinbaseIntExch and will begin by offering BTC & ETH perpetual futures settled in USDC with up to 5x leverage to institutional clients in eligible jurisdictions outside of the U.S.https://t.co/OzhbgJlZ2K
— Coinbase 🛡️ (@coinbase) May 2, 2023
The Coinbase International Exchange, as the company has just announced, will deliver a strong trading experience with the support of a number of external market makers that are eager to supply liquidity. In addition, it will feature a strict compliance liquidation structure.
According to the Coinbase team:
“Rest assured that Coinbase is committed to the US, but countries around the world are increasingly moving forward with responsible crypto-forward regulatory frameworks to strategically position themselves as crypto hubs.”
Focusing on International Growth
This is Coinbase’s first foray into derivative trading, one of the most lucrative areas of the crypto business outside of the United States due to the high regulatory and compliance standards that must be met.
Perpetual futures contracts for Bitcoin (BTC) and Ethereum (ETH) went live on the Coinbase International Exchange earlier today, with all transactions done in USDC. The exchange has said that it has no plans to provide fiat on-ramps.
Circle’s CEO has also weighed in to offer his congratulations on Coinbase’s new venture, singling out USDC as the only stablecoin pair traded on the platform.
According to Coinbase, the initial leverage provided by the contracts is up to five times and may be raised in the future. In addition to institutional customers in the United States, the trading platform also provides API access to clients in other eligible countries.
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