Coinbase’s offshore derivatives exchange, Coinbase International, has experienced a significant surge in trading activity, with volumes approaching $300 million per day. According to data from The Block’s data dashboard, the platform has consistently surpassed $100 million in daily volumes since August 14, reaching an impressive $287 million on August 18. This surge in trading volume raises the question of whether Coinbase can surpass Binance, currently the largest cryptocurrency exchange in the world.
Launched in May as part of Coinbase’s strategic initiative to expand globally, Coinbase International aims to accelerate its growth despite the complex regulatory landscape in the United States and its ongoing legal battle with the Securities and Exchange Commission (SEC). The company has successfully onboarded 50 institutional investors onto the platform, who have traded a staggering $5.5 billion in just seven weeks.
“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,” Coinbase stated in its shareholder letter.
Coinbase’s efforts to expand globally and capitalize on the increasing institutional interest in cryptocurrency trading put it in direct competition with Binance. Binance currently holds approvals and registrations in 18 markets, making it the cryptocurrency exchange with the most licenses.
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Recently, Coinbase announced that it has won approval from the National Futures Association (NFA) to offer crypto futures to eligible US customers. This approval came after the exchange applied with the NFA in September 2021 to register as a futures commission merchant (FCM). Access to a CFTC-regulated crypto derivatives market is essential to unlocking significant growth and enabling broader participation in the cryptoeconomy, Coinbase emphasized.
The global crypto derivatives market represents approximately 75% of the overall trading volume in the crypto space and is a vital access point for traders, according to Coinbase. With the approval from the NFA, Coinbase will be able to offer its US customers access to this market, expanding its services and attracting more users.
In addition to its efforts in expanding and offering new products, Coinbase has also launched a crypto advocacy group called Stand with Crypto Alliance. This independent nonprofit organization aims to mobilize support for legislation that would create a regulatory framework for digital assets in the US. By promoting the interests of the crypto community, Coinbase hopes to foster a favorable regulatory environment for the industry and encourage further growth.
As Coinbase continues to navigate the regulatory challenges in the United States and expand globally, its offshore derivatives exchange, Coinbase International, is experiencing significant trading volume. With volumes approaching $300 million per day, Coinbase is on its way to becoming a major player in the crypto market. It remains to be seen whether Coinbase can surpass Binance, the current leading cryptocurrency exchange, but its efforts to attract institutional investors and offer new products position it as a strong contender in the industry.
Overall, Coinbase’s growth and expansion plans signal its commitment to establishing itself as a global leader in the crypto space. With its focus on regulatory compliance and partnering with high-bar global regulators, Coinbase aims to create a secure and reliable trading environment for both institutional and retail investors. As the crypto industry continues to evolve, Coinbase’s success will depend on its ability to adapt to changing regulations and meet the growing demands of its users.
