According to reports, Coinbase, which is now based in the United States, plans to establish a cryptocurrency trading platform abroad.
A March 17 Bloomberg report claims that Coinbase spoke with some of its institutional clients about establishing the non-U.S. platform. The decision was reportedly made at a time when many American lawmakers and regulators were criticizing cryptocurrency companies for what they saw as their part in the demise of Silvergate Bank, Silicon Valley Bank, and Signature Bank.
Recently, many cryptocurrency companies have come under fire from American officials, including the Securities and Exchange Commission, notably Kraken for its US staking services. In March, Coinbase informed customers that its staking program would carry on in spite of the crackdown and “may even increase.”
The new Coinbase venture would reportedly service global clients, but does not yet have a confirmed location.
Expansion Plans Of Coinbase
According to reports, the exchange discussed this strategy with its institutional clients, as well as with financial institutions and market makers. But as of right now, it’s unknown what the new cryptocurrency trading site will be like.
Also, the revelation comes when the traditional banking system fails and the cryptocurrency industry in the United States loses banking support. As Silicon Valley Bank and Silvergate Bank failed, New York officials shut down Signature Bank, which resulted in the US cryptocurrency exchange losing a banking partner.
Prior to its unexpected collapse, Coinbase had $240 million in corporate cash in storage at Signature Bank. Notably, client funds were unaffected, and the exchange guaranteed that “all client cash at banks continues to be safeguarded by FDIC pass-through insurance”.
Moreover, Coinbase has other banking partners, including JPMorgan, the biggest bank in the US. Recently, the exchange also disclosed a relationship with Standard Chartered Bank for its Singaporean clients.
The cryptocurrency exchange then released a blog post titled “Our 8-week worldwide expansion push in 6 nations” not long ago. The cryptocurrency exchange intends to introduce new goods and services in foreign markets, according to the post.
In addition, relationships with “important partners in the financial sector, technology, and telco” will be announced, and prominent governments will be contacted. The message stated:
“Over the next eight weeks Coinbase will rapidly accelerate operationalizing its ‘Go Broad, Go Deep’ international strategy by rolling out a number of new initiatives in countries outside the US spanning across six continents: South America, Europe, Africa/Middle East, Asia, Australia, and North America”.