Exclusive

Coinbase's proposed overseas trading venue would offer derivatives: Sources

Quick Take

  • The exchange is looking to go abroad amid U.S. regulatory uncertainty.

Crypto exchange Coinbase is exploring launching an offshore platform to trade perpetual swaps tied to cryptocurrencies, according to two sources familiar with the firm’s aspirations to gate-crash a sector dominated by rival Binance.

The firm has briefed market-making and trading firms about the plans to roll out the platform in an offshore jurisdiction. Perpetual swaps — a type of future and a popular product in the crypto space – will be among the offerings. They provide a more capital-efficient way for traders to make bets on the underlying crypto market.

"As shared on our blog, we are accelerating our 'Go Broad, Go Deep' international strategy across six continents to better serve our global user base," a Coinbase spokesperson said by email. "Our international expansion drive will focus on high-bar regulatory jurisdictions."

Bloomberg reported earlier that Coinbase Global is considering setting up a new trading platform overseas, without specifying what the new venue would trade.

Binance dominance

Crypto exchange behemoth Binance commands a plurality of market share in bitcoin futures, according to The Block’s data dashboard. At its peak, FTX was a large player in the market as well, with nearly 25% market share in early 2021.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Last year, Coinbase acquired of FairX, a CFTC-regulated derivatives exchange, and in 2021 applied for membership in the National Futures Association, the U.S. self-regulatory organization for such businesses. 

Update: This story was updated with Coinbase comment.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Authors

Christiana is a long-time journalist who has written about markets in the Americas, politicians who stashed cash in their underwear and high-end heels, to name just a few. She previously spent six years at Bloomberg, and her work has appeared in the WSJ, LA Times, Insider, Vogue Business and more. Christiana has a bachelor's degree in English from Pace University and a master's degree in journalism from New York University. She completed a master's degree in media psychology for fun.
Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

Editor

To contact the editor of this story:
Larry DiTore at
[email protected]