CEFIMARKET

US-based cryptocurrency firms Coinbase and Gemini both launch offshore derivative exchanges

share
US-based cryptocurrency firms Coinbase and Gemini both launch offshore derivative exchanges

Table of Contents

Coinbase Launches Offshore Derivatives Exchange

On April 20, it was reported that Coinbase would launch an offshore derivatives exchange the following week. About two weeks later, Coinbase officially announced the launch of the international exchange, "Coinbase International Exchange."

According to the announcement, the international exchange was launched in collaboration with the Bermuda Monetary Authority (BMA) under its license.

Key points include:

  • Up to 5x leverage

  • Trading currently available only via API

  • Eligible institutional users outside the U.S. jurisdiction only

  • BTC and ETH perpetual contracts settled in USDC

In the announcement, Coinbase also emphasized the ongoing efforts of various countries to promote responsible crypto regulation, contrasting the U.S.'s approach of enforcement over regulation. It reiterated its commitment to the U.S. market while expressing hope that the U.S. would adopt a strategy positioning itself as a crypto hub.

The official Q&A mentioned that an Advanced Trading platform will be launched in the future, catering to non-U.S. professional investors and retail traders.

Gemini Launches Derivatives Exchange with 100x Leverage

Earlier reports indicated that Gemini was set to launch an offshore derivatives exchange, the "Gemini Foundation," on April 21.

On May 1, Gemini announced the official launch of the exchange, highlighting:

  • Traded in GUSD

  • Up to 100x leverage

  • Only BTC perpetual contracts available

  • Not available to U.S., UK, or EU users

Gemini emphasized in its announcement that it plans to introduce perpetual contracts, futures, and options for other cryptocurrencies like ETH/GUSD in the future.

Despite the close timing of their launches, Gemini and Coinbase have not shown a competitive stance publicly. Gemini's co-founder, Tyler Winklevoss, even congratulated Coinbase in a comment under Coinbase's tweet and suggested meeting "internationally."