Coinbase Advanced: Pioneering New Avenues for Global Traders
San Francisco-based cryptocurrency exchange, Coinbase, is once again making headlines with its recent revelation that it's extending perpetual futures trading to certain non-US regions. This marks another innovative stride for Coinbase as it aims to revolutionize the way traders across the world approach cryptocurrency.
Expanding the Crypto Frontier
The specialized platform, Coinbase Advanced, has been sculpted with the astute retail trader in mind. And now, starting October 18, these traders situated in eligible regions outside the United States will be able to dive into the world of perpetual futures trading. The move offers a dynamic opportunity for traders to leverage USDC in their trading strategies. With Bitcoin, Ether, Litecoin, and XRP contracts up for grabs, traders can access leverage of up to 5X. XRP, however, stands as an exception with a maximum leverage offer of 3X.
The decision to limit the leverage on XRP could be attributed to its unique market conditions or potentially to offer a safer trading environment given the coin's volatility in the past. Regardless, this announcement promises significant opportunities for international crypto traders.
Currently, the exciting new feature is only accessible via the Coinbase Advanced webpage. But, in keeping with the growing mobile-first approach in the fintech sector, Coinbase has plans in the pipeline to roll out mobile trading capabilities.
Ensuring a Safe Trading Environment
A primary concern for any trader entering the crypto market is the safety of their investment. Recognizing this, Coinbase has taken robust measures to ensure the safety of its users' funds. The company's perpetual futures exchange has been fortified through its Insurance Fund and Liquidity Support Program. Notably, both are funded in the USDC, offering an additional layer of security to the users.
Further adding to the traders' peace of mind, Coinbase made it clear that it steers clear of market-making practices. This is a refreshing stance in an industry that's occasionally plagued by doubts regarding market manipulations. The liquidity on the Coinbase platforms is tendered by established and vetted liquidity providers. Their selection is stringent, ensuring they comply with the exchange's rigorous standards.
Coinbase said, "In a global crypto derivatives market where trust is paramount, we're proud to stand among the few entities that prioritize security and transparency. Today, our Coinbase Advanced customers can trade with the assurance of engaging with perpetual futures contracts offered by the Coinbase International Exchange, designed with the highest compliance standards."
Strengthening Global Regulatory Framework
Coinbase's endeavors to pioneer new trading avenues aren't just confined to its platform features. The company is equally keen on fortifying its regulatory framework.
Last week's acquisition of the Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) is a testament to this. The license is an add-on to the in-principle approval the crypto giant received from the regulatory body in October of the previous year. It underscores Coinbase's commitment to operating within the bounds of legal and regulatory compliances, no matter the jurisdiction.
Adding to its regulatory accolades, the recently established Coinbase International Exchange has secured the green light from the Bermuda Monetary Authority (BMA). This nod allows the exchange to bring perpetual futures to its non-US customer base.
Conclusion
Coinbase's latest endeavor marks a significant moment for global crypto enthusiasts. The introduction of perpetual futures trading on Coinbase Advanced presents traders with new opportunities to expand and diversify their portfolios.
With a combination of new trading opportunities, robust safety measures, and a stringent regulatory framework, Coinbase is making a statement. The message is clear: while the crypto landscape evolves, Coinbase is not only keeping pace but often leading the charge.
It remains to be seen how these new offerings will impact the broader crypto market and what other innovations Coinbase has up its sleeve. However, one thing is certain: as the crypto sphere grows and diversifies, platforms like Coinbase are pivotal in shaping its future.
