Coinbase International, a subsidiary of Coinbase facilitating trading in perpetual futures contracts, has recently seen a sudden surge in trading activity. The volumes are nearing an impressive $300 million per day. Chiming with a strategic initiative to expand globally, Coinbase is stretching out despite the US’s complex regulatory landscape and an ongoing legal face-off with the SEC.
Coinbase’s shareholder letter reported a triumph in onboarding 50 institutional investors onto the platform. Over seven weeks, these investors traded an eyebrow-raising $5.5 billion. The letter also offered a glimpse into their second-half plans, revealing that they are “working to bring new features and additional products to market over the second half of the year.”
This growth draws an intriguing comparison to Binance, the current market giant in the crypto-exchange world. Will this surge in trading volume help Coinbase leapfrog its primary competitor? The platform rivalry could escalate given Coinbase’s global expansion plans and increasing institutional interest in crypto trading.
Despite the competitiveness, Binance still keeps its title as the largest crypto-exchange platform globally in terms of trading volume. Additionally, with approvals and registration attainment in 18 markets worldwide, Binance boasts the highest number of licenses among cryptocurrency exchanges.
Meanwhile, a noteworthy revelation from Coinbase disclosed its future plans for US customers. Recently approved by the National Futures Association (NFA), Coinbase is set to offer crypto futures to eligible US clients. This is a crucial development as the crypto derivatives market, representing around 75% of the overall trading volume in the crypto space, is a paramount access point for traders.
Additionally, Coinbase recently formed a crypto advocacy group named Stand with Crypto Alliance. The independent non-profit organization aims to rally support for legislations that favor a regulatory framework for digital assets in the US. This strategic establishment is reflective of Coinbase’s commitment to partnering with “high-bar global regulators” as stated in the shareholder letter.
Taken together, these strategies paint a robust future for Coinbase while presenting pertinent questions. Can this surge in trading volume be sustained over the long-term? How will it navigate through the prickly regulatory landscapes globally while expanding? Can it eventually topple Binance? Notably, these strategies signal the constant innovation and strategic thinking needed in the ever-evolving realm of cryptocurrency exchange.
Source: Cryptonews
