Coinbase International cryptocurrency exchange has broadened its perpetual futures services to non-US retail users. This development comes after the platform witnessed over $5.5 billion in notional volume during the second quarter, predominantly from institutional trading. The expansion was sanctioned by a Bermuda regulator, allowing Coinbase International Exchange to extend its offerings to eligible non-US retail clients, as revealed in a recent announcement.
The initial launch of perpetual futures trading by Coinbase in May was exclusively available to institutional investors outside the United States. However, starting September 28, non-US retail traders have the opportunity to verify their eligibility for perpetual futures trading on Coinbase Advanced. The actual commencement of trading activities is scheduled for the upcoming weeks.
Coinbase is willing to adhere to local frameworks and standards by working with local regulators to ensure compliance. This commitment stands out, especially when other crypto exchanges are retracting from various regions due to heightened scrutiny from local regulatory bodies. The Coinbase International Exchange, responsible for providing the service, is financially supported through its Insurance Fund and Liquidity Support Program, funded in USDC.
The platform ensures liquidity by sourcing it from compliant, independent liquidity providers. This approach is significant as Coinbase seeks to diminish its reliance on spot trading revenues, which have previously affected its stock performance following unsatisfactory quarterly earnings. The company also strives to diversify risk related to regulatory uncertainties, aiming for a balanced revenue mix in the evolving crypto market dynamic.
Coinbase joins centralized exchanges like Deribit, Binance, and Bitfinex in offering such contracts. The market also sees a rise in DeFi derivatives options from entities like dYdX and Aevo. Perpetual futures trading constitutes up to 75% of the overall global cryptocurrency trading volume, according to the exchange, making it a substantial component of the crypto trading world.
The expansion of Coinbase into perpetual futures for non-US retail users is a calculated move to stay competitive and relevant in the market. It underscores the company’s strategic shift and its continuous efforts to adapt to the changing landscape of the cryptocurrency market.
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