According to an announcement on May 2, the largest crypto exchange in the US Coinbase said that it has launched Coinbase International Exchange, a crypto derivatives platform for non US institutional clients. Users have access to trade perpetual futures settled in USDC with up to 5x leverage, settled in USDC.
However, not all but only non-US institutional users who meet the exchange’s requirements can register to create an account on Coinbase International Exchange. The reason Coinbase founded the derivatives platform is to better serve global users, especially since 75% of the crypto trading volume of 2022 will come from perpetual futures trading.
Coinbase International Exchange is committed to:
- Real-time 24/7 – 365 risk management
- Liquidity provided by external market makers – no proprietary trading
- Dynamic margin requirements and collateral assessments
- Liquidation framework that meets rigorous compliance standards
- Well-capitalized exchange to support tail market events
Rumors about Coinbase launching a derivatives exchange have been leaked since April when this US crypto giant registered to establish a subsidiary in Bermuda, although it previously always maintained its strategy of focusing only on the US market. Another reason comes from the regulatory environment in the US which is considered unfavorable by the industry. In March, the Securities and Exchange Commission warned Coinbase Global that it was likely to sue it for violating the law. In response, the exchange decided to sue the SEC for not providing clear instructions despite being asked many times.