The Rising Success of Coinbase’s Non-US Exchange

The Rising Success of Coinbase’s Non-US Exchange

Coinbase’s non-US exchange achieved a significant milestone on February 20th, surpassing $1 billion in daily trading volume. This accomplishment was highlighted by Coinbase International Exchange, which observed a 24-hour perpetual futures trading volume exceeding $1 billion in notional contract value. It marked the first time the non-US unit reached this impressive daily volume mark, signaling substantial growth within the service.

Live data from 8:15 pm UTC on the same day revealed that Coinbase International Exchange recorded $1.098 billion in 24-hour perpetual trading volume. This figure included substantial trading volumes for Ethereum (ETH) at $557.5 million, Bitcoin (BTC) at $425.9 million, and Solana (SOL) at $50.6 million. Despite other listings having lower trading volumes, the exchange’s spot market also saw activity, with $12.4 million in 24-hour spot trading volume. Currently, only Bitcoin and Ethereum are available for spot trading on the platform as of February 20th.

Coinbase initially launched its international exchange with a primary focus on institutional perpetual trading in May 2023. Later in December, the exchange expanded its offerings to include spot trading, broadening its appeal to a wider range of traders. Notably, the international exchange has yet to permit retail trading, as indicated on its website, showcasing a deliberate strategy to cater to institutional clients in the market.

The surge in trading volumes on Coinbase’s non-US exchange comes shortly after the company’s earnings report, focusing on its US-based exchange. While financial details for the international exchange were not disclosed, Coinbase emphasized the dominance of the crypto derivatives market, constituting 75% of all trading volume in 2023. As a response to the largely unregulated derivatives market, Coinbase aims to establish itself as a trusted and regulated service provider in this sector. This initiative includes the launch of derivatives for eligible US retail traders through its subsidiary, Coinbase Financial Markets (CFM), in late 2023.

Coinbase’s non-US exchange has exhibited remarkable success and growth, poised to establish itself as a key player in the international crypto trading landscape. With a strategic focus on institutional trading and an eye towards regulatory compliance, Coinbase is well-positioned to navigate the evolving dynamics of the cryptocurrency market.

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