Coinbase Is Seeking Futures Trading Approval
The company plans to offer various crypto derivatives to investors.
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Coinbase has filed an application for futures trading, suggesting that it will offer cryptocurrency derivatives to investors.
Coinbase Wants to Sell Crypto Futures
The exchange stated on Twitter today that it has registered with the National Futures Association as a Futures Commission Merchant.
Today, Coinbase filed an application with the NFA to register as an FCM → Futures Commission Merchant.
This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms.
👉 Goal: Further grow the cryptoeconomy.
— Coinbase (@coinbase) September 15, 2021
The status of the application is currently listed as “pending” on the website of the regulatory organization.
Previously, Brett Tejpaul, head of institutional sales, suggested that the company’s offerings may include “derivatives, futures, options, swaps, [and] structured products.” Tejpaul made that statement during an interview with crypto news site The Block.
Several other crypto exchanges already offer similar future trading features, including Binance, FTX, Huobi, Kraken, and BitMEX. As such, this feature may not come as a surprise.
Investors Are Taking Interest
The news comes months after Coinbase’s decision to enter the stock market, giving traditional investors a way to invest in the company.
It also comes just days after reports that Coinbase’s junk bonds saw great demand as the company sold $2 billion of debt.
Despite its success, Coinbase is also facing potential action from the U.S. Securities and Exchange Commission. The regulator has threatened to sue the exchange over its stablecoin lending service.
It remains to be seen whether Coinbase will be able to negotiate the rules around futures trading more effectively.
Coinbase is currently the second-largest cryptocurrency exchange by volume, reporting $4.4 billion in volume over the past day.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.