- Institutional investors can trade bitcoin and ether against USD Coin
- Derivative and spot trading work in tandem to ensure market liquidity
US-based crypto exchange Coinbase has launched spot crypto trading via its international arm as part of a worldwide expansion. The platform concedes that some of its users have become wary of US venues because of the hostile regulatory environment in the country.
Initially, institutional investors can trade bitcoin and ether against the USDC stablecoin on the international platform, which mainly deals with derivatives at the moment, South China Morning Post wrote, citing a Bloomberg report.
An aggressive road map
Coinbase’s institutional product head Greg Tusar drew attention to the importance of having derivative and spot trading side by side. In his opinion, they work in tandem to ensure market liquidity. The strategy is part of Coinbase’s “aggressive and very exciting road map.”
Broad regulatory crackdown
The US Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase for operating illegally as a broker, a crypto exchange, and a clearing agency. Coinbase disputes the claims.
The SEC is also suing Binance and Kraken exchanges for not registering with it. Both platforms rejected the regulator’s arguments. In November, Binance pled guilty to violating US sanctions and anti-money-laundering violations and must pay a $4.3 billion fine.
Crypto market rebounds
The crypto market is slowly recovering from a slump in 2022, partly because stakeholders expect SEC to finally boost the industry by allowing the flagship US spot bitcoin exchange-traded fund. Coinbase has seen its share prices increase this year. However, they are still a far cry from the levels of 2021, less than half of what they were worth then.
Coinbase moves out of the US?
Coinbase launched its international exchange in the spring of 2023 in an effort to diversify away from its home base. The exchange plans to list more cryptos over time. As it builds liquidity, it will start offering retail investors offshore spot trading.
