Coinbase Expands Perpetual Futures Services to Non-US Retail Users
Coinbase International cryptocurrency exchange has announced the expansion of its perpetual futures services to non-US retail users. This move comes after the platform experienced significant trading volume in the second quarter, primarily from institutional trading. The expansion was approved by a Bermuda regulator, allowing Coinbase International Exchange to offer perpetual futures trading to eligible non-US retail clients.
The initial launch of perpetual futures trading by Coinbase in May was limited to institutional investors outside the United States. However, starting September 28, non-US retail traders can verify their eligibility for perpetual futures trading on Coinbase Advanced. Trading activities are expected to commence in the coming weeks.
Coinbase’s Commitment to Compliance and Balanced Revenue
Coinbase is committed to complying with local regulations and working with regulators in different regions. This commitment is noteworthy as other crypto exchanges are facing increased scrutiny and withdrawing from certain markets. Coinbase International Exchange, responsible for providing the service, is financially supported through its Insurance Fund and Liquidity Support Program.
To ensure liquidity, Coinbase sources it from compliant independent liquidity providers. This approach aims to reduce reliance on spot trading revenues, which have previously impacted the company’s stock performance. By diversifying revenue streams and mitigating regulatory uncertainties, Coinbase strives for a balanced revenue mix in the evolving crypto market.
A Competitive Market
Coinbase joins other centralized exchanges like Deribit, Binance, and Bitfinex in offering perpetual futures contracts. The market also sees an increase in DeFi derivatives options from platforms like dYdX and Aevo. Perpetual futures trading accounts for a significant portion of global cryptocurrency trading volume, making it a crucial component of the crypto market.
Hot Take: Coinbase Expands Perpetual Futures to Stay Competitive
The expansion of Coinbase’s perpetual futures services to non-US retail users demonstrates the company’s strategic shift and its commitment to adapting to the evolving cryptocurrency market. By offering this product to a wider range of users, Coinbase aims to stay competitive and relevant in the highly competitive crypto exchange industry.
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