Benzinga - Coinbase International Exchange, initially established for non-U.S. institutional trading, has secured regulatory clearance from the Bermuda Monetary Authority (BMA) to offer perpetual futures trading to non-U.S. retail customers.
This move aligns with the discussions at Benzinga's Future of Digital Assets conference on Nov. 14, emphasizing the evolving landscape of digital asset trading.
What Happened: The decision to expand access to the global derivatives market came as part of Coinbase's "Go Broad, Go Deep" strategy.
In a blog post, Coinbase stated that while it advocates for the U.S. to lead in updating the financial system, this recent development signifies its intent to modernize the global financial system, aiming to provide more economic freedom to users worldwide.
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Coinbase's perpetual futures contracts, available on the International Exchange, have already recorded more than $5.5 billion in notional trading volume from institutions by the end of the second quarter, it stated.
The company attributed this success to its adherence to the BMA's regulatory framework, emphasizing risk management, compliance and user protection.
Distinguishing itself from competitors, Coinbase stated it assured customers of the safety of their assets, backed by audited financial statements that confirmed a 1:1 holding of customer assets.
Additionally, the International Exchange boasts a well-funded Insurance Fund and Liquidity Support Program, primarily in USD Coin (CRYPTO: USDC).
Coinbase further stated it refrained from market-making, relying instead on vetted, independent liquidity providers.
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