Coinbase to Offer Spot Crypto Trading Outside US in Global Expansion

Coinbase Global Inc., a leading figure in the digital currency exchange market, is poised to initiate spot cryptocurrency trading on its international exchange. This move is part of the company’s strategy to broaden its global reach, particularly targeting users who hold reservations about US-based venues amidst the country’s unclear regulatory environment.

Starting December 14, institutional investors will be granted the ability to trade Bitcoin and Ether paired with the USDC stablecoin. This new feature will augment the platform’s current offerings, which are primarily focused on derivatives trading. According to a statement by Coinbase, this development is a crucial element in creating a comprehensive trading environment that integrates both spot and derivatives markets.

Greg Tusar, the head of institutional product at Coinbase, underscored the significance of offering a dual trading capability. In an interview, Tusar remarked on the importance of such a holistic approach, noting that spot and derivatives trading complement each other, fostering a market that is both deep and liquid. He revealed that this integration is part of Coinbase’s ambitious and exhilarating strategic plan.

Coinbase’s foray into international spot trading comes at a time when the company faces legal challenges in its home country. The US Securities and Exchange Commission has taken legal action against Coinbase, alleging that the company operates an illegal exchange, broker, and clearing agency. These claims are strongly contested by Coinbase and are set against the backdrop of a wider SEC crackdown that has intensified following high-profile collapses in the crypto industry, including the FTX debacle.

The regulatory landscape in the US remains opaque, further complicated by the slow movement of crypto-related legislative bills through Congress. This has led some investors to seek trading opportunities in less uncertain jurisdictions.

Despite these challenges, the crypto market has shown signs of recovery from the 2022 downturn, buoyed by investor optimism that the US may soon approve its first spot Bitcoin exchange-traded funds. As a result, Coinbase’s share price has seen a significant surge this year, although it still sits below its peak from 2021.

The expansion strategy adopted by Coinbase began in May with the inauguration of its international exchange, a step towards reducing the company’s dependency on the US market. The platform aims to gradually incorporate more tokens and eventually extend offshore spot trading to retail investors as liquidity increases. Tusar believes that consolidating spot and derivatives trading within a single venue will catalyze volume growth, presenting a promising outlook for Coinbase’s international operations.