Coinbase Opens Futures Trading to Non US Users

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 Aims for Balanced Revenue

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.

A Competitive Market

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.

Also Read: Coinbase CEO Warns Of US Supreme Court Battle On Crypto

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Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.