Coinbase applies for trading crypto futures
Coinbase, the top US-based exchange, has recently submitted an application for registration with the National Futures Association (NFA), in Futures Commission Merchant (FCM).
Although details for the same are sparse, the NFA website has said its application, under the name “Coinbase Global Inc”, is pending, as of September 15.
Coinbase highlighted its application status via a Tweet on September 16, stating that this is its “next step to broaden” its services to “offer futures and derivatives trading” in the platform. It also said its goal behind this decision is to “grow the crypto economy.”
When Coinbase gets the FCM membership under NFA, it would further be required to register itself with the Commodity Futures Trading Commission, US derivatives regulator, in order to start operations.
Crypto derivatives markets overshadow spot markets, and despite plenty of regulatory FUD derivatives, it has managed to peak popularity in 2021.
CoinGecko data shows that the market has processed over $143 billion in the past 24 hours. Binance, Bybit and FTX are leading in terms of 24-hour open interest, with figures being $10.1 billion, $3.8 billion and $6.8 billion, respectively.
Coinbase has expressed its hopes that this move to derivatives and futures would go much smoother than its plans of offering USDC, wherein the Securities and Exchange Commission (SEC) had threatened to sue the firm had it gone ahead with the launch.
The Economic Times reported on September 15 that Coinbase had sold $2 billion worth of junk bonds the current week in an offering that witnessed $7 billion worth of orders placed for seven and 10-year bonds.