Coinbase (COIN.O) has announced the initiation of spot crypto trading services on its international exchange, marking a significant expansion beyond its U.S. operations. The company revealed that the spot trading service, initially oriented toward derivatives, will be introduced gradually on the international exchange. The rollout is set to commence on December 14, starting with bitcoin and ether trading against the USDC stablecoin for institutional clients.
In a blog post, Coinbase outlined the phased approach to implementing spot trading on its international platform, a move anticipated to diversify its services and appeal to a broader global audience. The expansion aligns with the company’s strategic vision to extend its presence beyond the U.S. market.
Analysts, including CFRA Research’s Michael Elliott, noted the timeliness of the announcement. Elliott suggested that Coinbase could leverage the launch to gain valuable experience and assess the demand for spot products, potentially positioning the company favorably for long-term growth, particularly as it seeks approval for similar offerings in the U.S.
The development comes amidst a notable surge in the value of bitcoin, which has more than doubled this year, reaching a 20-month high. Anticipation surrounding a spot bitcoin exchange-traded fund (ETF) has contributed to positive trader sentiment and increased overall trading volume.
Coinbase’s shares, reflecting its prominence in the cryptocurrency space, have seen a fourfold increase this year, showing investor confidence in the platform. The company’s stock experienced a modest 0.5% increase on Wednesday.
It is essential to note that Coinbase has faced regulatory challenges, including a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in June. The SEC accused Coinbase of selling unregistered securities, an allegation the company vehemently denied. The legal action is part of a broader regulatory crackdown in the United States, following incidents such as the collapse of FTX and other high-profile cases within the cryptocurrency industry.
