Crypto News-Coinbase has revealed a forthcoming avenue for its clientele to engage with regulated derivative products via Coinbase Financial Markets. This strategic step will extend eligible U.S. customers the opportunity to venture into the cryptocurrency derivatives market within a secure and sanctioned framework.
Coinbase Secures Regulatory Green Light for Cryptocurrency Futures Trading in the United States
The introduction of margin trading capability endows customers with leverage, furnishing them access to the crypto realm while requiring less initial investment compared to conventional spot trading. This facet renders it an appealing prospect, particularly for retail investors.
In 2022, Coinbase acquired FairX, a futures exchange overseen by the CFTC, which it subsequently rebranded as the Coinbase Derivatives Exchange. Subsequently, the exchange successfully launched nano Bitcoin and Ethereum futures contracts catering to both retail investors and the institutional sphere with larger versions. Notably, the Coinbase Derivatives Exchange has fostered an extensive liquidity pool, culminating in a significant notional volume of $4.7 billion in BTC futures and $2.0 billion in ETH futures trading in 2023. This development comes on the heels of Coinbase’s September 2021 application filing with the NFA to establish an FCM. The company has diligently collaborated with regulators, prioritizing compliance with requisite regulations and safeguarding customer interests.
This marks a pivotal juncture, as the global crypto derivatives market commands a substantial 75% of the total crypto trading volume worldwide. Coinbase‘s commitment persists as it endeavors to forge a productive rapport with regulators to secure the essential endorsements to deliver products aligned with its mission. The company remains dedicated to expounding on the methods through which verified U.S. patrons can partake in the futures offering, underlining the ongoing expansion of their offerings to suit the evolving needs of their esteemed clientele.
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