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Coinbase Derivatives Exchange will launch BTC and ETH perpetual futures trading on June 5, 2023 for non-US institutional customers only.
Leading US Crypto Exchange coinbase has announced its plans to introduce futures contracts for bitcoin (B T c) and ether (ETH) in its newly launched derivatives marketplace regulated by the Commodity Futures Trading Commission (CFTC,
The new venture, Coinbase Derivatives Exchange, officially launched in Bermuda last month following approval from the Bermuda Monetary Authority (BMA), the country’s financial regulator.
The company said that the derivatives platform enables traders to access perpetual futures contracts on BTC and Ether prices, offering leverage of up to 5X. Furthermore, to ensure stability and reliable value representation for participants, all trades conducted on the market will be settled in stablecoin USDC.
Fixed size of 1 BTC and 10 Ether
one in blog post On June 1st, Coinbase said it is set to launch two contracts on June 5th: Coinbase Bitcoin (BTI) and Coinbase Ether (ETI). The fixed size of the product will be 1BTC and 10 Ether. According to the firm, the sizing strategy was designed to help clients effectively control their market risks and achieve attractive returns with lower fees compared to other derivatives exchanges.
“With the launch of these institutional-sized USD-settled contracts, we aim to empower institutional participants with greater precision in managing crypto exposure, expressing directional views, or tracking bitcoin and ether returns in a capital-efficient manner.” Let’s see. Coinbase Derivatives Exchange is committed to delivering innovative solutions that specifically address the needs of institutional investors,” the company said.
Coinbase said it is committed to providing innovative solutions that specifically address the needs of institutional investors. On that note, the company has partnered with third-party Institutional Futures Commission Merchants (FCMs) and brokers to bring the new futures contracts available to users. The exchange plans to introduce incentive programs for these companies to adopt the product.
Coinbase said the decision to introduce futures contracts for bitcoin and ether was influenced by the valuable feedback it gathered during the launch of the Nano Bitcoin Futures and Nano Ether futures contracts. According to the blog post, the move was inspired by the insights and opinions shared by users, highlighting their importance and demand in the market.
Coinbase Eyes International Expansion
Meanwhile, the launch of Coinbase Derivatives Exchange in Bermuda is part of the company’s strategic move towards international expansion due to regulatory hurdles in the US.
Beyond Bermuda, Coinbase Is Gearing Up european expansion, especially in the United Kingdom. Exchange in March Unveiled Its global expansion is planned in a program called “Go Broad, Go Deep”, aiming to establish a presence on six continents in eight weeks.
Company CEO Brian Armstrong He believes that the US is an important market for crypto. Still, the recent regulatory chaos in the nation could push many companies out of the sector.
Apart from Coinbase, another crypto exchange Gemini is also looking to expand outside the US. Recently the company headed by the Winklevoss brothers City: An international derivatives market for non-US clients to conduct perpetual futures trading.
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