Crypto exchanges Coinbase and Gemini launch international trading platforms
Coinbase and Gemini are launching international cryptocurrency futures trading platforms
BTC and ETH open-ended futures trading with up to 5x leverage will be available on Coinbase's platform
Cryptocurrency exchange Coinbase has launched an international cryptocurrency derivatives trading platform aimed at institutional investors and traders, intending to diversify revenue and increase its share of the cryptocurrency market.
Coinbase International Exchange will begin listing perpetual bitcoin (BTC) and Ethereum (ETH) futures paired with USD Coin Stablecoin (USDC) as early as this week.
In April, Coinbase said it was considering promoting cryptocurrency derivatives trading in overseas jurisdictions, including Abu Dhabi, and about obtaining a license in Bermuda, where the new exchange will be registered.
At the same time, Gemini, another U.S.-based crypto exchange, also announced the launch of a derivatives trading platform outside the United States to serve customers from 30 countries, including Singapore, Hong Kong, Brazil, and the Philippines.
Announcing the launch of the trading platform in an exclusive interview with Fortune, Gemini founders twin brothers Cameron and Tyler Winklevoss said the regulatory situation in the U.S. contributed to their decision to open an international Gemini office in Singapore. According to the brothers, they applied to the Commodity Futures Trading Commission (CFTC) to open cryptocurrency derivatives trading in the United States back in early 2020, but withdrew it in early 2023 after it "became clear that there was no chance of that the short term."
Derivatives trading, which includes more complex forms of financial instruments based on underlying assets such as BTC or ETH, proved popular on the Binance, Bybit, Deribit, and FTX exchanges before its collapse. The most popular derivative among crypto traders is a perpetual futures contract (perpetual futures), which allows speculating on the price movements of an asset without owning it or fixing a settlement date.
Because trading in cryptocurrency derivatives is severely limited in the U.S., U.S. crypto exchanges focus primarily on spot markets. Some cryptocurrency platforms allocate special divisions for the U.S. market, in which derivatives trading is not available.