Coinbase’s recently launched offshore derivatives exchange has seen rapid growth in trading volume, surpassing $287 million in daily volume last week, according to data from The Block.
The exchange, which offers trading in perpetual futures contracts, launched in May as part of Coinbase’s efforts to accelerate its global expansion. Since going live, the platform’s daily trading volumes have steadily climbed, consistently exceeding $100 million daily since August 14.
The launch comes as Coinbase faces a cloudy regulatory environment in the US, including an ongoing legal battle with the SEC, which sued the firm in June. The offshore derivatives exchange allows Coinbase to tap into growing institutional demand for crypto derivatives outside the
country.
Over 50 institutions part of Coinbase derivatives market
According to Coinbase’s latest shareholder letter, over 50 institutions have already joined the new derivatives market. In its first seven weeks, the exchange saw $5.5 billion in trading volume, signaling strong initial demand.
Meanwhile, bitcoin futures volumes broadly have declined this summer after surging to over $1.3 trillion in March. Volumes fell to $608 billion in July as crypto prices retreated, based on data from The Block.
But the surge in activity on Coinbase’s fledgling derivatives exchange points to a continued appetite for crypto derivatives products, especially among institutional traders. With the platform now consistently generating nearly $300 million in daily volume, Coinbase’s offshore expansion appears to be paying dividends.
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