Coinbase to launch Solana and Avalanche futures amid FTX fallout … –  |  Editor Pollock Mondal

Published Nov 13, 2023 04:32AM ET

In a strategic pivot following the recent collapse of FTX, Coinbase (NASDAQ:COIN) Global has announced its plan to list Solana (SOL) and Avalanche (AVAX) futures. The new offerings, SOL-PERP and AVAX-PERP, are scheduled to go live on Tuesday, targeting institutional clients outside the United States. This decision marks a significant shift for the cryptocurrency exchange as it seeks to diversify revenue streams beyond spot trading and navigate the regulatory landscape more effectively.

Coinbase’s introduction of these futures markets is a direct response to the changing dynamics in the crypto industry precipitated by the downfall of FTX. By expanding into derivatives trading with SOL-PERP and AVAX-PERP futures, Coinbase is positioning itself to capture demand from institutional investors looking for regulated venues to trade digital asset derivatives.

The launch of these futures contracts is contingent upon liquidity conditions and is part of a broader strategy by Coinbase to reduce its dependence on spot trading revenue. This move also reflects an effort to mitigate regulatory risks, as the company adapts to an environment where oversight of crypto assets is becoming increasingly stringent.

The decision by Coinbase underscores the ongoing shifts in the cryptocurrency market, where exchanges are rapidly adapting their business models in the wake of high-profile disruptions. By offering futures contracts for Solana and Avalanche, Coinbase aims to provide institutional users with more tools for risk management and investment, signaling a maturation of the crypto derivatives space.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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