Coinbase Global Inc. is expanding its services by introducing spot crypto trading on its international exchange as part of a global expansion strategy aimed at catering to users with reservations on U.S.-based platforms.
Although Coinbase stock has seen substantial growth this year, currently valued at around $140 per share, it is still far from its 2021 high of over $300.
Coinbase International expands its offerings
Institutional investors now have the opportunity to exchange Bitcoin and Ether for the stablecoin USDC on the international Coinbase platform. The move is part of the platform’s global expansion strategy, primarily targeting users who may be cautious of US-based sites 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 meet 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 integrates spot trading, allowing the two to operate side by side.
According to Greg Tusar, Head of Institutional Products at Coinbase, this dual approach is crucial because it helps each market segment complement the others, ensuring a deep and liquid market.
Coinbase sees the addition of spot markets as a way to provide a seamless and enhanced trading experience for perpetual futures traders, providing users around the world with increased access to a trusted non-U.S. spot exchange.
The Company envisions Coinbase International Exchange becoming the cornerstone of the global crypto ecosystem, delivering capabilities that redefine industry standards while maintaining its commitment to trust, security and usability.
SEC Lawsuit Against Coinbase
The United States Securities and Exchange Commission (SEC) has reportedly sued Coinbase, alleging that the platform operated an illegal exchange, broker-dealer, 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 trading in May, aiming to diversify away from the US 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 site as a way to increase trading volumes.
It is worth noting that the SEC has also sued other major exchanges, including Kraken and Binance, for allegedly failing to register with the regulatory agency. Kraken and Binance rejected the SEC’s arguments. The regulatory environment in the United States remains uncertain, with slow progress on crypto-related bills in Congress adding to the complexity.
Meanwhile, the crypto market has seen a partial rebound from the challenges of 2022, with investors anticipating the approval of the first spot Bitcoin exchange-traded funds (ETFs) in the United States in the coming weeks.
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