Coinbase, a prominent player in the global cryptocurrency exchange market, has broadened its perpetual futures offerings to include non-US retail customers. This move follows a robust second quarter for the platform, which saw over $5.5 billion in notional volume, primarily from institutional trading.
Despite Global Regulatory Uncertainty, Coinbase Continues to Move Forward
The expansion received approval from a Bermuda regulator, paving the way for Coinbase International Exchange to broaden its services to qualified non-US retail clients. Initially, when Coinbase launched perpetual futures trading in May, it was solely accessible to institutional investors outside the United States.
From September 28 onwards, non-US retail traders can check their eligibility for perpetual futures trading on Coinbase Advanced. The actual start of trading activities is slated for the coming weeks.
Coinbase is dedicated to complying with local regulations and standards by collaborating with local regulators. This dedication is noteworthy, particularly as other crypto exchanges are withdrawing from certain regions due to increased regulatory scrutiny.
Perpetual futures trading accounts for up to 75% of the total global cryptocurrency trading volume, as per the exchange. Coinbase’s decision to expand into perpetual futures for non-US retail users is a strategic move to maintain competitiveness and relevance in the market.
It highlights the company’s strategic evolution and ongoing efforts to adapt to the dynamic cryptocurrency market landscape. Coinbase now stands alongside centralized exchanges such as Deribit, Binance, and Bitfinex in offering these contracts. The market is also witnessing an increase in DeFi derivatives options from platforms like dYdX and Aevo.
Coinbase’s expansion is viewed as a crucial step towards reducing its dependence on spot trading revenues, which have previously impacted its stock performance following less than satisfactory quarterly earnings.
The company is also working towards diversifying risk associated with regulatory uncertainties, aiming for a balanced revenue mix in the ever-evolving crypto market dynamic.
