Coinbase International, a prominent cryptocurrency exchange, has expanded its perpetual futures services to non-US retail users. This move comes after the platform experienced significant trading volume, primarily from institutional investors, reaching over $5.5 billion in notional volume during the second quarter. The expansion was authorized by a Bermuda regulator, allowing Coinbase International Exchange to offer its services to eligible non-US retail clients.
The launch of perpetual futures trading was initially limited to institutional investors outside the United States, but as of September 28, non-US retail traders can verify their eligibility for trading on Coinbase Advanced.
To ensure compliance, Coinbase is committed to working with local regulators and adhering to local frameworks and standards. This commitment is noteworthy, especially as other cryptocurrency exchanges are facing increased scrutiny from regulatory bodies and withdrawing from certain regions.
Coinbase International Exchange, responsible for providing the service, is financially supported through its Insurance Fund and Liquidity Support Program, which is funded in USDC. The platform sources liquidity from compliant, independent liquidity providers, aiming to reduce reliance on spot trading revenues and diversify risk associated with regulatory uncertainties.
Coinbase’s expansion into perpetual futures for non-US retail users is a strategic move to remain competitive and relevant in the cryptocurrency market. This development highlights the company’s adaptability and willingness to evolve in response to the changing landscape of the industry.
Perpetual futures trading constitutes a significant portion of the global cryptocurrency trading volume, making it an essential component of the crypto trading world. Coinbase joins other centralized exchanges and decentralized finance (DeFi) derivatives options providers in offering such contracts, emphasizing the competitive nature of the market.