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Seeking Alpha 2023-05-04 13:30:07

Coinbase's offshore exchange could be up to $200M/year revenue opportunity: Needham

Coinbase Global's ( NASDAQ: COIN ) newly launched international cryptocurrency derivatives exchange could be a $30M-$200M a year revenue opportunity, Needham analyst John Todaro wrote in a note Thursday. That assumes a two to three basis-point take rate and 2023 as an example year, the note said. At $30M a year, COIN would represent the fourth largest crypto native offshore crypto derivatives exchange, and at $200M a year, COIN would be the third largest. On Tuesday, Coinbase ( COIN ) introduced its crypto derivatives exchange in Bermuda , through which institutional users based in eligible jurisdictions outside the U.S. can trade perpetual bitcoin ( BTC-USD ) and ethereum ( ETH-USD ) futures, as regulatory scrutiny of the industry heated up in the U.S. The company secured a license toward the end of April to operate in Bermuda. Brian Armstrong, CEO of U.S.-based Coinbase ( COIN ), reportedly said mid-April that the trading platform would consider relocating outside the U.S. if the country's regulatory clarity for the emerging space does not improve. "While we are excited about the opportunity set given the void left by FTX ( FTT-USD ) in international futures, we are not yet baking any numbers into our model as it is too early to determine the product's chances of success," Todaro said. More on Coinbase Global Here Are The Big Problems Dogging Coinbase (Aside From The SEC) Coinbase Stock: Don't Fight The SEC Coinbase Q1 earnings preview: Poor show expected amid weaker trading volumes

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