If approved, Coinbase will be required to register with the Commodity Futures Trading Commission, the US derivatives regulator
Coinbase has applied to become a fully registered Futures Commission Merchant (FCM). The application has been submitted to the National Futures Association (NFA).
Although it’s pending, the application by the top U.S crypto exchange was done on September 15. It was done under ‘Coinbase Global Inc’.
On September 16, the company highlighted the application via Twitter. The move is set to broaden its offerings by offering derivatives and futures trading on the platforms. The end goal? To further the crypto economy growth.
Despite the popularity of regulatory FUD derivatives in 2021, the crypto derivatives market is small. In the past 24 hours, over $143 billion was processed in the market. FTX, Binance and Bybit are the current leaders with $6.8 billion, $10.1 billion and $3.8 billion respectively.
Coinbase is hopeful that the move to derivatives and futures will go smoother than the USD coin lending product offering. The company was threatened with legal action by the Securities and Exchange Commission if the product was launched.
This week, Coinbase has sold junk-bonds worth $2 billion. This was via an offering where orders worth $7 billion were placed for 7 and 10-year bonds.
We’ve reported that TrueLayer introduced instant refunds and withdrawals solution.