Coinbase plans to set up a derivatives exchange outside the US

Coinbase exchange is planning to launch a perpetual contracts trading platform for cryptocurrencies outside of the United States.

Coinbase plans to set up a derivatives exchange outside the US
Coinbase plans to set up a derivatives exchange outside the US

The company is said to have presented the plan to trading and market-making partners in order to build a platform outside of the current US jurisdiction. Perpetual Swap (roughly translated as “Eternal Contract”) is a popular type of Futures contract in the cryptocurrency industry. These contracts will provide a more optimal solution for capital and make it possible for traders to bet based on the native assets in the crypto market.

Currently, Coinbase has no official response to the above information.

A source from Bloomberg said that Coinbase Global is considering setting up an overseas trading institution, but the above information does not clarify the type of products the platform will support.

The Dominions of Binance

At the present time, Binance is still considered the “boggart” of the cryptocurrency exchange market and specifically the Bitcoin Futures contract array. At its peak in 2021, the scandalous exchange FTX (one-time competitor of Binance) could only hold 25% of the market share of this product segment.

This move by Coinbase is seen as challenging the leading position of Binance and turning this seemingly boring race to life again. Coinbase recently acquired FairX, a derivatives exchange licensed by the CFTC and registered as a member of the National Futures Association (NFA).

Notably, recently, Coinbase has continuously made moves to adapt to the regulations of US authorities such as delisting stablecoin BUSD and continuously fighting for reasonable legal limits for the Staking product segment.

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