- Fireblocks expands services with Coinbase partnership.
- Offers derivatives and trading products.
- Targets institutional investors.
- Available to users in eligible jurisdictions outside the US.
- Potential benefits include enhanced security and governance.
- Crypto market growth driving service expansion.
Fireblocks Expands Trading Capabilities
Infrastructure provider Fireblocks has announced a significant expansion in its services through a strategic partnership with Coinbase. The collaboration will enable Fireblocks to offer derivatives and trading products, including perpetual futures and spot trading, primarily targeting institutional and retail investors.
As per the announcement on June 10, Fireblocks’ platform now supports trading perpetual futures and spot contracts via the Coinbase International Exchange. This new solution is designed with institutional investors in mind, such as hedge funds, trading firms, and family offices. Fireblocks emphasizes the potential benefits for users, highlighting that the platform facilitates perpetual and spot trading under stringent governance policies and workflows to mitigate security risks and prevent unauthorized transactions. Unlike spot trading, which involves the immediate buying or selling of an asset, perpetual trading allows investors to bet on future price changes without an end date or obligation to own the asset.
Exclusive Access and Market Expansion
The new trading capabilities are accessible only to users in “eligible jurisdictions” outside the United States, as Coinbase International, a Bermuda-based entity, has not specified the countries it serves on its website or Terms of Service. This expansion comes amid a bullish crypto market, providing Fireblocks with an opportune moment to broaden its business scope.
Recently, Fireblocks also launched a custodian arm in the United States, aimed at meeting the increasing institutional demand for digital assets. This new entity initially offers custody for Bitcoin (BTC), Ether (ETH), and three stablecoins, with plans to add more assets as per the requirements of the New York Department of Financial Services (NYDFS).
Institutional Demand and Market Projections
The market for digital assets is projected to continue its growth as more traditional investors and financial institutions venture into the space. Asset tokenization is seen as a critical step to enhance overall market liquidity. Institutions are increasingly interested in diversifying their portfolios with crypto assets, signaling a strong and growing institutional presence in the crypto industry.
Fireblocks claims its platform has processed transactions worth over $6 trillion for more than 200 million wallets worldwide, serving over 30 exchanges and 55 banks in the digital asset sector.