Amidst regulatory hurdles faced by the cryptocurrency industry in the United States, Coinbase has launched its global derivatives platform, the Coinbase International Exchange (CIE), designed for crypto derivatives trading. The CIE will begin trading by listing Bitcoin and Ether perpetual futures, which will be settled in Coinbase-backed stablecoin USD Coin (USDC), requiring no fiat on-ramps. The platform is available to institutional clients via the application programming interface in eligible, non-US jurisdictions, but not to retail customers at present. According to the announcement, the new international crypto platform has been launched with the support of regulators in Bermuda, which is known for its high level of transparency, compliance, and cooperation. In mid-April 2023, Coinbase obtained a license from the Bermuda Monetary Authority to operate a digital asset exchange and a digital asset derivatives exchange provider.
Miami International Holdings, the company operating the Bermuda Stock Exchange, acquired the remaining assets of the collapsed FTX cryptocurrency exchange in late April. Meanwhile, the launch of the Coinbase International Exchange (CIE) coincides with Citigroup, a major US investment bank, downgrading Coinbase shares from “buy” or “high risk” to “neutral” or “high risk.” Citigroup also lowered the price target from $80 to $65, citing regulatory uncertainty in the broader cryptocurrency sector as a significant threat to Coinbase.