The leading US cryptocurrency exchange Coinbase has filed an application to become a registered Futures Trader Commission (FCM) registered with the National Futures Association (NFA).
Details are scarce, but according to the NFA website, the pending application was filed Sept. 15 under the name “Coinbase Global Inc.”
Coinbase highlighted the move via Twitter on September 16 and he stated that “this is the next step in expanding our offerings and offering futures and derivatives trading on our platforms. Goal: to further grow the cryptographic economy.”
If Coinbase becomes an approved member of the FCM under the NFA, the company will have to register with the U.S. derivatives regulator, the Commodity Futures Trading Commission, to get the green light.
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Cryptographic derivatives markets exceed the size of spot markets and, despite the abundance of FUD regulatory derivatives, have exploded in popularity in 2021. According to CoinGecko data, the market processed more than $ 143 billion over the past 24 hours. Binance, FTX and Bybit currently lead the package in terms of 24-hour open interest, with $ 10.1 billion, $ 6.8 billion and $ 3.8 billion respectively.
Coinbase expects its transition to futures and derivatives to be much smoother than its plans to offer a dollar-denominated currency (USDC) loan product after the Securities and Exchange Commission (SEC) threatened to sue the company. if it continued with the launch.
According to a Sept. 15 report published by The Economic Times, Coinbase also sold $ 2 billion worth of junk bonds this week in a bid that placed $ 7 billion orders for seven- and ten-year bonds.