• Coinbase has opened a crypto derivative exchange in Bermuda, called Coinbase International Exchange.
• The exchange will initially let traders bet on the price of bitcoin and ether via perpetual futures contracts with up to five times leverage and all trades settle in USDC.
• The move comes as U.S.-based crypto trading firms look for other locations to expand due to regulatory headwinds in the U.S.
Coinbase Opens Offshore Crypto Derivatives Exchange
U.S.-based crypto trading firm Coinbase is opening a derivatives exchange in Bermuda as part of an international expansion plan that comes as the publicly traded firm faces regulatory headwinds at home. Called Coinbase International Exchange, the new facility will initially let traders bet on the price of bitcoin and ether via perpetual futures contracts with up to five times leverage and all trades will settle in the stablecoin USDC.
Details of The Exchange
The exchange supports up to 5x leverage on its perpetual futures contract products, making it one of the most liquid derivative products available for global traders looking for exposure to cryptocurrency markets without needing to own actual coins or tokens.
Regulatory Pushback In The US
The move represents Coinbase’s latest foray into derivative trading, one of the most popular corners of the global crypto market despite being effectively iced out of the U.S., where such activities require hefty oversight.
Gemini Also Launches An International Crypto Derivatives Exchange
Also Tuesday, Gemini announced the launch of its own international crypto derivatives exchange.
Conclusion
As pressure mounts from regulators regarding derivatives trading in cryptocurrencies, more companies are beginning to look outside their domestic borders for opportunities in this burgeoning sector of finance.