Coinbase’s exchange sees $280M daily trading, can it surpass Binance?

Coinbase's exchange sees $280M daily trading, can it surpass Binance?

The Surging Trading Activity and Global Expansion of Coinbase’s Offshore Derivatives Exchange

Coinbase’s offshore derivatives exchange has recently experienced a significant surge in trading activity, with volumes approaching $300 million per day. This surge in trading volume on the Coinbase International platform, which facilitates trading in perpetual futures contracts, is evidence of both the growing popularity of cryptocurrency trading and Coinbase’s strategic global expansion efforts.

Launched in May, Coinbase International is part of Coinbase’s initiative to expand globally. Despite the complex regulatory landscape in the United States and its ongoing legal battle with the Securities and Exchange Commission (SEC), Coinbase aims to accelerate its growth by tapping into new markets. This effort seems to be paying off, with the platform consistently surpassing $100 million in daily volumes since August 14 and reaching an impressive $287 million on August 18.

Institutional Investor Onboarding and Trading Volumes

According to Coinbase’s shareholder letter, the platform has successfully onboarded 50 institutional investors within just seven weeks of trading. These institutional investors have traded a staggering $5.5 billion, highlighting the growing interest in cryptocurrency among traditional financial institutions. Coinbase’s commitment to building liquidity and expanding institutional participation is evident in its plans to bring new features and products to market, such as additional asset trading books and spot trading.

“We remain committed to partnering with high-bar global regulators and are encouraging the US to follow the progressive regulatory frameworks seen in emerging crypto hubs,” the letter reads. This commitment to regulatory compliance and collaboration sets Coinbase apart as a player willing to work with regulators to establish a robust and trustworthy marketplace for cryptocurrencies.

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The Quest to Surpass Binance and Global Expansion

The surge in trading volume across Coinbase’s offshore exchange raises the question of whether it can surpass the leading cryptocurrency exchange, Binance. Binance currently holds the top spot in terms of trading volume and has approvals and registrations in 18 markets, making it the cryptocurrency exchange with the most licenses. However, Coinbase’s efforts to expand globally and capitalize on institutional interest in cryptocurrency trading might pose a challenge to Binance’s dominance.

Coinbase’s strategic global expansion and the increasing institutional interest in cryptocurrency trading make it a strong contender. By providing a secure and compliant platform, Coinbase aims to tap into new markets and attract more institutional investors. This global expansion will not only benefit Coinbase but also contribute to the overall growth and maturation of the blockchain industry.

Coinbase’s Future Plans: Crypto Futures in the US

In a recent development, Coinbase announced that it has received approval from the National Futures Association (NFA) to offer crypto futures to eligible US customers. This achievement comes after Coinbase applied with the NFA in September 2021 to register as a futures commission merchant (FCM), allowing it to act as a futures trading broker on its platform.

Access to a CFTC-regulated crypto derivatives market is essential for unlocking significant growth and enabling broader participation in the cryptoeconomy, according to Coinbase. The global crypto derivatives market currently represents approximately 75% of the overall trading volume in the crypto space, underscoring the importance of offering futures trading to customers.

Coinbase’s Advocacy Efforts and Stand with Crypto Alliance

Coinbase’s commitment to fostering the growth and development of the crypto industry extends beyond its own operations. The company recently launched Stand with Crypto Alliance, an independent nonprofit organization dedicated to promoting the interests of the crypto community and advocating for a regulatory framework for digital assets in the US. This initiative reflects Coinbase’s desire to not only succeed in the industry but also contribute to its long-term stability and success.

In conclusion, the surge in trading activity on Coinbase’s offshore derivatives exchange, along with its global expansion plans and institutional investor onboarding, solidify its position as a major player in the blockchain industry. With its efforts to comply with regulatory frameworks and offer innovative products, such as crypto futures in the US, Coinbase is poised to make significant strides in both the institutional and retail sectors of the cryptocurrency market. As Coinbase continues to grow and face off against competitors like Binance, the blockchain industry as a whole stands to benefit from increased liquidity, adoption, and regulatory advancement.

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