Coinbase’s overseas derivatives platform has seen a marked increase in trading volumes, nearing $300 million daily.
Data insights from The Block’s analytics platform indicate that since August 14, Coinbase International, which handles perpetual futures contract trades, has regularly exceeded daily trading volumes of $100 million.
On August 18, the trading volume on the platform peaked at an impressive $287 million.
Introduced in May, Coinbase International serves as a key component of Coinbase’s broader global expansion strategy.
In the face of a challenging regulatory environment in the U.S. and an ongoing legal tussle with the Securities and Exchange Commission (SEC) that began in June, the company remains committed to boosting its growth.
In a letter to shareholders, Coinbase revealed that they have effectively integrated 50 institutional investors into their platform.
Within a mere seven-week trading period, these investors generated a remarkable trading volume of $5.5 billion.
The letter stated, “Even though we’re still in the initial phase of building liquidity and enhancing institutional engagement, we’re concurrently gearing up to introduce new features and a range of products in the latter half of this year, which includes expanding asset trading books and offering spot trading.”
The company emphasized its dedication to collaborating with stringent global regulatory bodies and voiced its hope that the U.S. would embrace the forward-thinking regulatory approaches observed in burgeoning cryptocurrency hubs.
The notable uptick in trading volume on Coinbase’s international exchange brings to light the potential challenge it might pose to the current market leader, Binance.
The rivalry between these two giants is likely to heat up, given Coinbase’s vigorous global expansion endeavors and its bid to tap into the rising tide of institutional cryptocurrency trading interest.
At present, Binance stands as the global frontrunner among cryptocurrency exchanges based on trading volume.
Furthermore, Binance boasts regulatory clearances and registrations across 18 markets, encompassing countries like France, Italy, Spain, Sweden, Dubai, and El Salvador. This extensive regulatory footprint positions it as the cryptocurrency exchange with the highest number of licenses worldwide.
Coinbase to Offer Crypto Futures to US Customers
Recently, Coinbase announced its successful acquisition of approval from the National Futures Association (NFA) to provide crypto futures trading to qualifying US clientele.
This development follows Coinbase’s application to the NFA in September 2021, seeking to be recognized as a futures commission merchant (FCM), thereby facilitating futures trading on its platform.
The exchange highlighted the importance of this move, stating, “Gaining entry to a CFTC-regulated crypto derivatives marketplace is pivotal in catalyzing substantial expansion and fostering more inclusive engagement in the cryptoeconomy.”
Coinbase has pointed out that around 75% of the total trading volume in the cryptocurrency realm is attributed to the global crypto derivatives market, emphasizing its crucial role for traders.
In addition to this, Coinbase has recently spearheaded the initiation of a crypto advocacy group with the objective of championing the concerns of the crypto community.
Named the “Stand with Crypto Alliance”, this autonomous nonprofit entity is dedicated to rallying support for legislative measures geared towards establishing a clear regulatory environment for digital assets within the United States.
