Expanding Into the Crypto Perps Market
With the introduction of the Coinbase International Exchange, the company is officially entering the crypto perps market. This follows recent headlines about disputes with U.S. regulators and plans for overseas expansion.
Platform Features and Market Makers
The new platform boasts a robust trading experience, partnership with external market makers providing liquidity, and a liquidation framework adhering to strict compliance standards. It will cater to institutional users in eligible jurisdictions outside of the U.S. and aims to offer additional versatility in trading strategies.
Initial Listings and Leverage Offered
Coinbase International Exchange will initially offer bitcoin and ether derivatives, with more listings planned. The platform will provide traders with 5x leverage to start.
Navigating the U.S. Regulatory Landscape
Coinbase and other exchanges, like Gemini, want to build offshore derivatives businesses to compete with industry giants like OKX and Binance. This highlights both the opportunity to fill the gap left by the now-defunct FTX and the uncertain regulatory environment in the U.S.
Legal Battles with the SEC
Coinbase's ongoing conflict with the Securities and Exchange Commission (SEC) has intensified, as the company threatened a lawsuit following a Wells Notice issued against it in March. The firm plans to operate its new international exchange under Bermuda's regulatory framework.