Coinbase Allows Non-US Customers to Trade Perpetual Futures on Coinbase Advanced
Coinbase has announced that customers residing in eligible non-US regions can now participate in perpetual futures trading on Coinbase Advanced. This platform is specifically designed for retail traders looking for specialized features.
Trading Options and Leverage
Starting from October 18, traders will be able to use USDC as their preferred currency to place bids on four different contracts: Bitcoin, Ether, Litecoin, and XRP. These contracts offer leverage of up to 5X, except for XRP, which provides a maximum leverage of 3X.
Access and Future Plans
Initially, perpetual futures trading will only be accessible through the Coinbase Advanced webpage. However, Coinbase plans to introduce mobile trading options in the near future.
Funding and Liquidity
Coinbase assures its customers that its perpetual futures exchange is well-funded through its Insurance Fund and Liquidity Support Program, both of which are funded in USDC. The company also emphasizes that it does not engage in market making, and the liquidity on its platforms is provided by established and independent liquidity providers who have undergone compliance evaluations.
“Today, only a few trusted players exist in the global crypto derivatives market that provide the security and transparency that crypto traders need to trade with confidence. In addition to our institutional customers, Coinbase Advanced customers can now access perpetual futures contracts offered by Coinbase International Exchange, which have been built within rigorous compliance standards.”
Licensing Approvals
Last week, Coinbase acquired a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This approval builds upon the initial in-principle approval granted by the regulator last October. Additionally, Coinbase International Exchange, a new non-US exchange, received regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures for customers outside of the US.
Hot Take: Expanding Opportunities for Non-US Traders
Coinbase’s decision to allow non-US customers to trade perpetual futures on Coinbase Advanced is a significant step towards expanding opportunities in the global crypto derivatives market. By providing specialized features and leveraging USDC as the currency of choice, Coinbase aims to meet the needs of discerning retail traders. The company’s commitment to rigorous compliance standards and independent liquidity providers further enhances the security and transparency of its platform. With recent licensing approvals in Singapore and Bermuda, Coinbase continues to strengthen its presence in international markets, ensuring that non-US customers have access to innovative trading options.
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