Leading US cryptocurrency exchange Coinbase has submitted an application to become a Registered Futures Trader (FCM) with the National Futures Association (NFA).
Details are scarce, but according to the NFA website, the pending application was submitted on September 15 under the name “Coinbase Global Inc.
Coinbase highlighted the move via Twitter on September 16 and declared that âthis is the next step in expanding our offerings and offering futures and derivatives on our platforms. Objective: to continue the growth of the crypto economy. “
If Coinbase becomes an approved member of FCM under the NFA, then the company will need to register with the US derivatives regulator, the Commodity Futures Trading Commission, to get the green light.
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Crypto derivatives markets eclipse the size of spot markets, and despite an abundance of regulatory FUD derivatives, their popularity has exploded in 2021. According to data from CoinGecko, the market has traded over $ 143 billion in the past 24 years. time. Binance, FTX, and Bybit currently lead the pack in 24-hour open interest, with $ 10.1 billion, $ 6.8 billion, and $ 3.8 billion, respectively.
Coinbase is hoping its move to futures and derivatives will go much more smoothly than its plans to offer a USD coin lending product (USDC), after the Securities and Exchange Commission (SEC) threatened to sue the company in court if it materializes with the launch.
According to a September 15 report from The Economic Times, Coinbase also sold $ 2 billion in junk-bonds this week as part of an offer that saw $ 7 billion in orders placed for seven and ten bonds. years.