Coinbase exchange seeks to join the National Futures Association, a self-regulating group for derivatives trading, it has filed an application which upon approval will allow it trade crypto futures.
Coinbase, the largest cryptocurrency exchange in the United States filed an application with the National Futures Association to become a futures commission merchant. The National Futures Association (NFA) is a “self-regulatory body for the United States derivatives market.”
This shows that the exchange is attempting to move beyond spot trading, which involves exchanging one asset for another, to derivatives trading, which involves placing bets on future prices.
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
While Bitcoin derivatives have become a big market, cryptocurrency futures and options have long been a gaping void in Coinbase’s product range.
Most other exchanges throughout the world, including Binance, OKEx, FTX, and even some US-based organizations like CME Group Inc. and Kraken, offer them, but Kraken primarily caters to non-US consumers. Due to regulatory uncertainties, several U.S. exchanges have stayed away.
In 2017, Cboe Global Markets, Inc. was the first to list Bitcoin futures, but it was quickly overtaken by CME Group Inc., whose products were more widely accepted.
Coinbase purchased Skew, an analytics firm best known for analyzing the derivatives market, earlier this year.
