Coinbase is teaming up with U.S.-based infrastructure provider Transaction Network Services (TNS) to enable faster, more efficient transactions on its derivatives exchange, the companies said Tuesday.

Coinbase unveiled the Derivatives Exchange (CDE), which is regulated by the Commodity Futures Trading Commission (CFTC), in June 2022 to attract more retail traders. Futures contracts require less upfront investment than traditional bitcoin futures products.

The cloud-based financial trading infrastructure deployed by TNS for the exchange will enable institutional investors to increase storage capabilities and process large data sets with minimal delay.

“Crypto has witnessed both volatile and liquid markets, and with institutional adoption remaining strong, we believe the time is right for the offering that TNS brings to the table,” CDE CEO Boris Ilyevsky said. “Dedicated cloud infrastructure connectivity coupled with our derivatives exchange represents a mission-critical step toward supporting and maintaining a vibrant and reliable crypto derivatives market.”

Crypto derivatives, such as futures and options, are a popular trading tool for investors looking to leverage or manage risk.

Crypto exchange rival Gemini is reportedly looking to start an international crypto derivatives exchange that will specifically focus on perpetual futures, a type of derivative that is banned in the U.S. for retail traders.

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Helene Braun

Helene is a U.S. markets reporter at WJB, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

Follow @HeleneBraunn on Twitter

Helene Braun

Helene is a U.S. markets reporter at WJB, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

Follow @HeleneBraunn on Twitter

source:coindesk