Coinbase Global Inc. is expanding its services by introducing spot crypto trading on its international exchange as part of a global expansion strategy to cater to users with reservations about U.S.-based platforms.
Although Coinbase’s stock has experienced substantial growth this year, currently valued at approximately $140 per share, it is still a long way from its peak at over $300 in 2021.
Coinbase International Expands Offerings
Institutional investors now have the opportunity to trade Bitcoin and Ether against the USDC stablecoin on Coinbase’s international platform. This move is part of the platform’s global expansion strategy, mainly targeting users who may be cautious about U.S.-based venues due to regulatory uncertainties.
We are excited to announce the next phase of our Coinbase International Exchange expansion – the launch of non-US spot markets for eligible customers, designed to address the unique needs and demands of our global user base. pic.twitter.com/JWEChT5BDa
— Coinbase 🛡️📞 (@coinbase) December 13, 2023
The international platform, primarily focused on derivatives trading, now incorporates spot trading, allowing both to operate side by side.
According to Greg Tusar, Coinbase’s head of institutional products, this dual approach is crucial as it helps each market segment complement the others, ensuring a deep and liquid market.
Coinbase sees the addition of spot markets as a means to offer a seamless and enhanced trading experience for perpetual futures traders, providing global users with increased access to a trusted non-U.S. spot exchange.
The company envisions Coinbase International Exchange becoming a cornerstone of the global crypto ecosystem, delivering capabilities that redefine industry standards while maintaining its commitment to trust, safety, and user-friendliness.
SEC’s Lawsuit Against Coinbase
The U.S. Securities and Exchange Commission (SEC) reportedly sued Coinbase, alleging that the platform operated an illegal exchange, broker, and clearing agency. This legal action is part of a broader crackdown by the SEC following several crypto-related collapses, including the FTX incident. Coinbase, however, disputes these claims.
The exchange expanded its international exchange in May, aiming to diversify away from the U.S. market. The platform plans to list additional tokens over time and eventually offer offshore spot trading to retail investors as liquidity increases. Coinbase sees hosting spot and derivatives activities on the same venue as a way to boost trading volumes.
It’s worth noting that the SEC has also sued other major exchanges, including Kraken and Binance, for allegedly failing to register with the regulatory agency. Both Kraken and Binance have rejected the SEC’s arguments. The regulatory environment in the U.S. remains uncertain, with the slow progress of crypto-related bills through Congress adding to the complexity.
Meanwhile, the crypto market has experienced a partial rebound from challenges in 2022, with investors anticipating the approval of the first spot Bitcoin exchange-traded funds (ETFs) in the U.S. in the coming weeks.