Coinbase Derivatives Exchange, a derivatives platform linked to the cryptocurrency exchange of the same name, will offer Bitcoin and Ether futures to institutional clients on June 5. The company announced on Friday that access to it will be available through institutional futures commission dealers (FCMs) and third-party brokers.
Coinbase added that it has seen an increase in demand for futures contracts among investors. Futures contracts are agreements that allow investors to buy or sell an asset at a predetermined price at a specified time in the future.
“With the launch of these USD-settled institutional contracts, we look forward to enabling institutional participants to more accurately manage cryptocurrency exposure, articulate directional views, or track returns for BTC and Ether in a capital efficient manner,” the exchange said.
In early May, Coinbase launched a global cryptocurrency derivatives exchange targeting institutional clients based outside of the United States. Subsequently, the new platform listed perpetual Bitcoin and Ether futures contracts, with trades settled in the stablecoin in US dollars. Unlike futures contracts, perpetual futures contracts do not have specific expiration data.
The launch of the derivatives exchange follows Coinbase obtaining a regulatory license for digital asset exchange services, including the sale and issuance of tokens, in Bermuda. The move came after the listed cryptocurrency firm hinted at leaving the US due to regulatory concerns.
struggled with the regulators
In March, Coinbase received a notice from the Securities and Exchange Commission (SEC) for Wells. The notice stated that the Nasdaq-listed company was violating US securities regulations by offering unregistered securities.
In addition, the notice indicated that the SEC may press further action against the exchange, including an injunction or cease and desist order. In response to the SEC’s notice, Coinbase CEO Brian Armstrong criticized the agency for failing to provide adequate regulation for the industry.
However, the company is expanding its product offering and recently launched a no-fee subscription model that allows users to trade cryptocurrencies without fees with incentives with higher rewards. Dubbed Coinbase One, the service launched in 2021 in the US under a beta program and opened to users in the UK, Germany and Ireland.
Coinbase Derivatives Exchange, a derivatives platform linked to the cryptocurrency exchange of the same name, will offer Bitcoin and Ether futures to institutional clients on June 5. The company announced on Friday that access to it will be available through institutional futures commission dealers (FCMs) and third-party brokers.
Coinbase added that it has seen an increase in demand for futures contracts among investors. Futures contracts are agreements that allow investors to buy or sell an asset at a predetermined price at a specified time in the future.
“With the launch of these USD-settled institutional contracts, we look forward to enabling institutional participants to more accurately manage cryptocurrency exposure, articulate directional views, or track returns for BTC and Ether in a capital efficient manner,” the exchange said.
In early May, Coinbase launched a global cryptocurrency derivatives exchange targeting institutional clients based outside of the United States. Subsequently, the new platform listed perpetual Bitcoin and Ether futures contracts, with trades settled in the stablecoin in US dollars. Unlike futures contracts, perpetual futures contracts do not have specific expiration data.
The launch of the derivatives exchange follows Coinbase obtaining a regulatory license for digital asset exchange services, including the sale and issuance of tokens, in Bermuda. The move came after the listed cryptocurrency firm hinted at leaving the US due to regulatory concerns.
struggled with the regulators
In March, Coinbase received a notice from the Securities and Exchange Commission (SEC) for Wells. The notice stated that the Nasdaq-listed company was violating US securities regulations by offering unregistered securities.
In addition, the notice indicated that the SEC may press further action against the exchange, including an injunction or cease and desist order. In response to the SEC’s notice, Coinbase CEO Brian Armstrong criticized the agency for failing to provide adequate regulation for the industry.
However, the company is expanding its product offering and recently launched a no-fee subscription model that allows users to trade cryptocurrencies without fees with incentives with higher rewards. Dubbed Coinbase One, the service launched in 2021 in the US under a beta program and opened to users in the UK, Germany and Ireland.