In a significant strategic move, Coinbase (NASDAQ:COIN) has received regulatory approval to offer crypto futures in the United States and has announced the forthcoming launch of a global derivative exchange. This expansion marks a notable shift for the cryptocurrency exchange platform, which faced financial challenges following a significant loss of $1 billion in Q2 of 2022 after a record $1.6 billion profit in Q2 of 2021.

Facing vulnerability during the crypto winter, Coinbase, reliant on transaction fees, implemented various initiatives to stabilize and diversify its revenue streams. These measures included the launch of its own blockchain, Base, and efforts to generate income through staking, subscription rewards, custodial fees, and its partnership with USDC.

Under the strategic initiative “Go Broad, Go Deep,” Coinbase expanded its presence into international markets such as Germany, the U.K., Ireland, Canada, Brazil, and Singapore in the Summer of 2023. This global expansion is part of Coinbase’s broader goal to grow its customer base beyond the United States.

Additionally, the company implemented cost-cutting measures, including workforce reductions, increased process automation, data infrastructure restructuring, and scaling back its real estate footprint, resulting in over a one-third reduction in expenses.

The regulatory approval to offer crypto futures in the U.S. and the upcoming launch of a global derivative exchange in November 2023 underscore Coinbase’s efforts to broaden its product portfolio, reduce risk, and attract a more diverse range of investors interested in cryptocurrency markets.