- Coinbase exchange is entering the crypto futures market.
- Coinbase did not miss the opportunity to fill the gap in the futures market after the collapse of FTX.
The giant crypto exchange Coinbase announced today that it has launched its “Coinbase International Exchange”.
Coinbase Officially Enters the Futures Market!
Coinbase, which has been in the headlines lately with its discussions with US regulators and plans to open a company abroad, said in a statement today that it will allow international users to make so-called permanent futures trades from Bermuda through a new platform.
#Coinbase announced the launch of its futures exchange. $COIN
— CO NEWS (@coinotag) May 2, 2023
The platform, called Coinbase International Exchange, offers a solid trading experience jointly provided with a ready-to-provide liquidity set of external market makers, as well as a “settlement framework that meets strict compliance standards,” according to marketing materials shared with CoinOtag.
The company said, “Coinbase International Exchange will allow institutional users located in appropriate jurisdictions outside the United States to trade in permanent futures. Permanent futures account for approximately 75% of global crypto trading volume in 2022, creating highly liquid markets and providing traders with additional versatility in their trading strategies.”
A spokesperson said Coinbase plans to work with Bitcoin and Ethereum derivatives in the future with additional listings. Initially, it will offer traders 5x leverage.
Unstable Regulatory Environment
As CoinOtag previously reported, the company has long planned to set up an offshore derivatives business to compete with giants like Binance. This was a business that the now-defunct crypto exchange FTX had gained a significant market share in.
Coinbase is not alone. Gemini recently announced that it will offer derivative trading to customers in 30 jurisdictions.
The move by Coinbase and Gemini reflects the opportunity to take advantage of the void left by FTX’s falling competitors, as well as the uncertain regulatory environment in the state.
Coinbase recently stepped up its fight with the Securities and Exchange Commission (SEC) after the agency issued a Wells Notice against the company in March threatening to file a lawsuit.
Last month, the company announced that it will operate its new international exchange under Bermuda’s regulatory framework.
Bitcoin Exchange Coinbase Launches a New Exchange! The news was first published on CoinOtag.
