Coinbase’s offshore derivatives exchange, Coinbase International, has seen a surge in trading activity, with volumes reaching nearly $300 million per day. Since August 14, the platform has consistently surpassed daily volumes of $100 million, and on August 18, it reached an impressive $287 million.
Coinbase International, which was launched in May as part of Coinbase’s global expansion strategy, aims to accelerate its growth despite the complex regulatory landscape in the United States. The company is currently engaged in a legal battle with the Securities and Exchange Commission (SEC) since June.
According to Coinbase’s shareholder letter, the platform has successfully onboarded 50 institutional investors, who traded a total of $5.5 billion in just seven weeks. The letter also states that Coinbase plans to introduce new features and products, such as additional asset trading books and spot trading, in the second half of the year.
While Coinbase’s offshore exchange experiences a surge in trading volume, it raises speculation on whether it can surpass Binance, the world’s largest cryptocurrency exchange in terms of trading volume. Coinbase’s global expansion efforts and institutional interest in cryptocurrency trading may intensify the competition between the two platforms.
Binance currently holds approvals and registrations in 18 markets, making it the cryptocurrency exchange with the most licenses. However, Coinbase recently received approval from the National Futures Association (NFA) to offer crypto futures to eligible US customers. This move is seen as essential for Coinbase to unlock significant growth and broader participation in the crypto space.
In addition to its business expansion, Coinbase launched a crypto advocacy group called the Stand with Crypto Alliance. The nonprofit organization aims to mobilize support for legislation that would create a regulatory framework for digital assets in the US.