Coinbase derivatives exchange will begin trading perpetual futures contracts for BTC and ETH on June 5, 2023, for non-US institutional clients only.
Leading US cryptocurrency exchange Coinbase has announced its plans to offer futures contracts for Bitcoin (BTC) and Ether (ETH) on the newly launched derivatives market regulated by the Commodity Futures Trading Commission (CFTC).
The new project, Coinbase Derivatives Exchange, was officially launched last month in Bermuda after approval by the country’s financial regulator, the Bermuda Monetary Authority (BMA).
The company said the derivatives platform will enable traders to speculate on the price of BTC and Ether using perpetual futures contracts, providing up to 5X leverage. Moreover, all trades made in the market will be settled in the USDC stablecoin, ensuring stability and reliable value representation for participants.
Fixed size of 1 BTC and 10 Ether
in blog post Dated June 1, Coinbase said that two contracts: Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) are scheduled to launch on June 5. The product will have a fixed volume of 1BTC and 10 Ether. According to the company, the volume strategy is designed to help clients effectively control their market exposure and generate attractive returns with lower fees than other derivative exchanges.
“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 bitcoin and ether returns in a capital efficient manner. Coinbase Derivatives Exchange is committed to providing innovative solutions It specifically caters to the needs of institutional investors.”
Coinbase has stated that it is committed to providing innovative solutions that specifically address the needs of institutional investors. On that note, the company has partnered with external institutional commission dealers (FCMs) and brokers to offer new futures contracts available to users. The exchange plans to offer incentive programs for these companies to adopt the product.
Coinbase said its decision to introduce Bitcoin and Ether futures contracts was influenced by valuable feedback collected during its launch of the Nano Bitcoin futures and Nano Ether futures contracts. According to the blog post, the move was driven by the insights and opinions shared by users, highlighting its importance and market demand.
Coinbase Eyes international expansion
Meanwhile, the launch of Coinbase’s derivatives exchange in Bermuda is part of the company’s strategic move toward international expansion due to regulatory hurdles in the United States.
Besides Bermuda, Coinbase is gearing towards European expansion, particularly into the UK. In March, the exchange a statement Its global expansion plans in a program dubbed “Go Broad, Go Deep”, with the goal of establishing a presence across six continents in eight weeks.
The company’s CEO, Brian Armstrong, believes that America is an important market for cryptocurrency. However, the recent regulatory chaos in the country may push many companies out of the region.
Apart from Coinbase, another Gemini cryptocurrency platform is also exploring expansion outside the US. The company, led by the Winklevoss brothers, recently introduced an international derivatives marketplace for non-US customers to trade in perpetual futures contracts.
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