May 2, 2023 2:45 PM | 1 min read
Coinbase Global Inc. (NASDAQ:COIN) is diversifying its business by launching an international derivatives exchange for institutional crypto traders outside the United States.
The Coinbase International Exchange will list Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) perpetual futures starting this week, after receiving a license from the Bermuda Monetary Authority in April.
The San Francisco-based company is entering a market largely occupied by offshore players such as Binance (CRYPTO: BNB) and the now-collapsed FTX (CRYPTO: FTT).
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you’ll also get Benzinga’s ultimate morning update AND a free $30 gift card and more!
Coinbase is grappling with legal uncertainty in the U.S., as it received a Wells Notice from the Securities and Exchange Commission in March, indicating potential legal action.
Also Read: CoinMarketCap’s ‘Killer Whales’: The Shark Tank Of Web3 And NFT Entrepreneurship
Options 101: The Beginner’s Guide
Want to become an options master? In his free report, options expert Nic Chahine will give you access to the four bulletproof tips for beginners, the secret to scoring 511% gains with options, and his time-tested “plan” for success. Grab your free copy of Options 101: The Beginner’s Guide ASAP.
A company spokesperson told Bloomberg, “Coinbase continues to await approval to be able to offer futures directly to our customers in the U.S.” Initially, the international exchange in Bermuda will only be available to non-US institutional clients.
Perpetual futures, popular among crypto traders for hedging or speculating on the price of underlying tokens using leverage, don’t have an expiration date.
Coinbase International Exchange will initially offer up to five times leverage, and all trading will be settled in USD Coin, the stablecoin issued by Circle Internet Financial Ltd. (CRYPTO: USDC), a Coinbase partner.
In a blog post, Coinbase stated its commitment to the U.S. market but expressed disappointment in the country’s “regulation by enforcement” approach.
The company derived 84% of its revenue from the U.S. last year.
Some earlier attempts at global expansion, such as operations in Japan, faced challenges and were eventually shut down.
Read Next: MicroStrategy’s Bitcoin Stash Could Potentially Make It The World’s Richest Company
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Credit: Source link
