Coinbase International Debuts Perpetual Futures for Non-US Institutional Traders

Coinbase’s perpetual contracts will offer up to 5x leverage and direct access trading via API is available to institutional clients outside the US

article-image

Iryna Budanova/Shutterstock, modified by Blockworks

share

Coinbase has launched a new perpetual futures exchange targeting non-US institutional investors and traders, in an effort to diversify its revenue and capture a larger share of the crypto market.

The Coinbase International Exchange will initially list bitcoin (BTC) and ether (ETH) perpetual futures later this week, settling all trading in USDC without requiring fiat on-ramps, Coinbase said in a statement shared with Blockworks.

It follows reporting last month that the exchange was said to be eyeing a derivatives push in overseas jurisdictions including Abu Dhabi while securing licensure in Bermuda, where the new exchange will be established.

Bermuda’s regulatory framework is known for its transparency, compliance, and cooperative approach, the exchange said. The Bermuda Monetary Authority (BMA), which regulates financial services in Bermuda, is an active member of a number of international organizations. 

The BMA also maintains “close relationships” with other regulatory agencies globally, Coinbase said.

“Coinbase is committed to the US, but countries around the world are increasingly moving forward with responsible crypto-forward regulatory frameworks,” Coinbase said in a statement.

“We would like to see the US take a similar approach instead of regulation by enforcement which has led to a disappointing trend for crypto development in the US.”

That trend has been largely the result of US SEC chair Gary Gensler’s approach to crypto regulation, which has angered the industry and prompted vocal opposition. Coinbase itself has sued the regulator in what it’s calling an attempt to seek clarity on digital asset regulation.

While Coinbase has sought to diversify regulatory risk it’s also seeking to diversify its dependency on spot trading revenues which, at times, have hammered its share price based on poor quarterly performances. Perpetual futures account for up to 75% of global crypto trading volume, the exchange said.

Round-the-clock risk management, typical liquidity provisions from market makers and dynamic margin requirements will make up some of the exchange’s features. Coinbase also said its exchange will incorporate a liquidation framework that meets strict compliance standards in addition to being “well-capitalized” in the event of destabilizing market events.

Coinbase’s perpetual contracts will offer up to 5x leverage and direct access trading via API is available to institutional clients outside the US. The products are not yet available to retail customers.

It is unclear whether Coinbase intends to make its latest exchange available to retail investors. Blockworks has reached out for further clarification.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495B in value locked, doubling Uniswap's Base deployment.

article-image

The former Valkyrie CEO chats with Blockworks about what she has her eye on as Cypherpunk Holdings’ new leader

article-image

Thursday’s CPI report shows prices are coming down more quickly than analysts had anticipated, renewing hope that central bankers will cut rates in the fall

article-image

If we tokenize all assets in a speculative rush, the risk of creating illiquid markets and trapped value will manifest on a large scale

article-image

Plus, Trump is headed to the heart of Bitcoinlandia with a speaking appearance at the Bitcoin 2024 conference

article-image

Meanwhile, stocks rally after Jerome Powell finishes his Capitol Hill tour

article-image

Plus, Blinks have reshaped many people’s understanding of what blockchains are capable of