Daily trading volume on Coinbase International surges to $287 million

On 18 August, daily turnover on the Coinbase International cryptocurrency derivatives exchange reached a record $287 million. The Block reports.

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The bulk of activity is concentrated in perpetual contracts based on Ethereum and Bitcoin. Litecoin- and XRP-based instruments account for only a small portion of the volume.

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Coinbase launched the platform in May 2023. The firm obtained a license from the Bermuda Monetary Authority.

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The decision came amid an investigation SEC into the listing procedures on the exchange and its products — Coinbase Prime, Coinbase Wallet and staking service Coinbase Earn.

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“We are working on bringing to market new features and additional products in the second half of the year,” —the statement says in a letter to the platform’s shareholders.

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According to Greg Tusar, the company’s vice president of institutional products, year-to-date through mid-August the trading volume of perpetual contracts denominated in digital gold on Coinbase International reached $4.7 billion, with Ethereum-based instruments at $2 billion.

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In the Bitcoin futures segment, overall trading volume declined from $1.3 trillion in March to $608 billion in July.

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On 16 August 2023, Coinbase received a license from the CFTC for a FCM. This will enable select US-based clients to access cryptocurrency-futures trading.

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In 2022, the exchange acquired FairX — a regulated CFTC crypto-derivatives platform, which was renamed Coinbase Derivatives Exchange.

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The platform is open to third-party brokers, FCMs and market makers.

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Coinbase filed for a license in September 2021.

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Launch of the service for select users is expected in the coming weeks.

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Analysts at JPMorgan noted that the move would open a new revenue stream for the company worth hundreds of millions of dollars over the next two years.