Coinbase Derivatives Exchange will begin trading BTC and ETH perpetual futures on June 5, 2023, for non-US institutional clients only.
Major American crypto exchange Coinbase has announced plans to introduce futures contracts for Bitcoin (BTC) and Ether (ETH) on its recently launched derivatives market, regulated by the Commodity Futures Trading Commission (CFTC).
The new venture, Coinbase Derivatives Exchange, officially debuted last month in Bermuda following approval from the country’s financial regulator, the Bermuda Monetary Authority (BMA).
The company said that the derivatives platform would allow traders to speculate on the prices of BTC and Ether using perpetual futures contracts, offering up to 5X leverage. Additionally, all transactions made on the market will be settled in the USDC stablecoin, ensuring stability and a reliable representation of value for participants.
Fixed size of 1 BTC and 10 Ether
in a blog post Dated June 1, Coinbase said it will launch two contracts: Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) on June 5. The product will have a fixed size of 1 BTC and 10 Ether. According to the firm, the sizing strategy was designed to help clients effectively control their market exposures and achieve attractive returns at lower fees than other derivatives exchanges.
“By launching these institutional-sized USD-settled contracts, we seek to empower institutional participants with greater precision in managing crypto exposure, expressing directional views or tracking Bitcoin and Ether returns in a time-efficient manner. capital. Coinbase Derivatives Exchange is committed to offering innovative solutions that specifically meet the needs of institutional investors,” the firm said.
Coinbase stated that it is committed to offering innovative solutions that specifically meet the needs of institutional investors. In that regard, the company has partnered with brokers and third-party institutional futures commission merchants (FCMs) to make new futures contracts available to users. The exchange plans to offer these companies incentive programs to adopt the product.
Coinbase said that its decision to introduce futures contracts for Bitcoin and Ether was influenced by valuable feedback collected during the launch of the Nano Bitcoin and Nano Ether futures contracts. According to the blog post, the move was driven by the ideas and opinions shared by users, highlighting its importance and demand in the market.
Coinbase Eyes International Expansion
Meanwhile, the launch of the Coinbase Derivatives Exchange in Bermuda is part of the company’s strategic move toward international expansion due to regulatory hurdles in the US.
Apart from Bermuda, Coinbase is gearing towards European expansion, especially in the UK. In March, the exchange sleepless its global expansion plans in a program dubbed “Go Broad, Go Deep”, with the goal of establishing its presence on six continents in eight weeks.
The company’s CEO, Brian Armstrong, believes that the United States is an important market for cryptocurrencies. Still, the recent regulatory chaos in the nation could push many companies out of the region.
In addition to Coinbase, another cryptocurrency exchange, Gemini, is also exploring expansion outside of the US. The company, run by the Winklevoss brothers, recently introduced an international derivatives market for non-US clients to trade perpetual futures.
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