Fireblocks, an infrastructure provider, has broadened its service offerings; it now provides institutional and retail investors with derivatives and trading products as a result of its partnership with Coinbase
The Fireblocks platform now facilitates the trading of perpetual futures and spot contracts with the Coinbase International Exchange, as announced on June 10. The solution is primarily intended for institutional investors, such as hedge funds, trading firms, and family offices.
The company asserted that users could benefit from perpetual and spot trading conducted under pre-established governance policies and protocols to reduce security risks and unauthorized transactions. Unlike spot trading, which involves an asset’s immediate purchase or sale, perpetual trading involves wagering on future price changes without an end date or obligation to own the asset.
The new capabilities are exclusively accessible to users in “eligible jurisdictions” outside the United States. Coinbase International, a Bermuda-based corporation, does not specify the countries it serves on its website or Terms of Service.
Fireblocks is capitalizing on the current cryptocurrency bull market to broaden its operations. The company recently disclosed that it is establishing a custodian arm in the United States to address the institutional demand for digital assets.
The new entity will initially provide custody of Bitcoin (BTC) at a value of $69,902 and Ether (ETH) at a value of $3,691, and three stablecoins, with additional assets added by the New York Department of Financial Services (NYDFS).
As traditional investors and financial institutions enter the digital asset market, it is anticipated to continue to expand. This encompasses asset tokenization, which is considered a critical measure for improving the overall liquidity of the markets.
Institutions are also recognized for their interest in diversifying their portfolios with crypto assets, further suggesting a robust and expanding institutional presence in the crypto industry.
The Fireblocks platform is estimated to have processed more than $6 trillion in transactions for more than 200 million wallets worldwide. The company claims it provides services to over 30 exchanges and 55 institutions in the digital asset sector.
