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Coinbase Filled An Application with National Futures Association (NFA) To Start Offering Crypto Futures Trading

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The cryptocurrency exchange Coinbase is now venturing into cryptocurrency derivatives.

The largest crypto trading platform in the United States filed an application with the National Futures Association (NFA) on Wednesday to register as a futures commission merchant.

According to the records, the company is registering as Coinbase Financial Markets Inc.


Currently, Coinbase only offers spot buying and selling, but the derivatives market is much larger in size. For example, in the past 24 hours, Binance saw more than $17 billion in Bitcoin futures trading, dwarfing the volume of its spot exchange by a factor of three.

Most exchanges, Binance, OKEx, FTX and others, offer derivative products, but not for US-based clients due to regulatory uncertainty.


CME is the largest regulated crypto derivatives platform in the US, listing Bitcoin futures in December 2017; Shortly thereafter, Cboe was the first to launch crypto futures and began offering Ethereum futures earlier this year.

FTX.US has also acquired the CFTC-regulated LedgerX to offer trading in futures, options and swaps on Bitcoin and Ether to take advantage of the huge untapped opportunity.

In order to be able to offer derivative products in the US market, the company must register with the Commodity Futures Trading Commission (CFTC), the federal regulator for all derivative products. Before doing this, they must first be members of the NFA, the organization that handles the registration process on behalf of the regulator.

With this step, Coinbase wants to open up the much more lucrative and larger derivatives market. Coinbase has been expanding its business since being listed directly on the Nasdaq in April. The exchange has aggressively expanded the tradable assets on its platforms by listing Dogecoin (DOGE) and Axie Infinity (AXS) alongside many other altcoins and DeFi coins.

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Owner of TheCryptoBasic. Involved in cryptocurrencies for more than five years, Love to trade and write on cryptocurrencies. My primary aim is to provide genuine information to cryptocurrency readers because crypto is filled with frauds and scams. Accurate information is scarce to get. So We at TheCryptoBasic will be providing accurate information about cryptocurrencies topics that users can trust.


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