Representatives of the bitcoin exchange Coinbase attended an international futures industry conference in Boca Raton, Florida, United States. During the event they outlined the strategy for developing its derivatives-focused division, The Block reports.
Among the speakers were Vishal Gupta, the exchange’s head, and Neil Brady, co-founder of FairX, who is now Coinbase’s senior director of product. The latter led the rebranding acquired in January 2022 of the regulated CFTC platform. It will be named Coinbase Derivatives.
During the presentation, the company outlined three key directions:
- Creating a futures intermediary (Futures Commission Merchant, FCM). In September 2021 Coinbase sent an application for registration with the NFA. As of writing, it had not yet been approved.
- Creation of a Designated Contract Market (Designated Contract Market, DCM). For this purpose Coinbase Derivatives would be positioned as “an advanced low-latency trading platform with participants in the form of large retail brokers and market makers.”
- Connecting to Deutsche Börse Group’s derivatives-clearing organisation Normal Clear. In November 2020, this organisation received CFTC approval.
Representatives said they were in talks about linking Coinbase Derivatives to brokers, market makers, and futures intermediaries.
The exchange expects approval from the CFTC for a broad product lineup. The presentation states that the tools will meet the needs of both institutional and retail clients. At present the platform offers the launched FairX products.
As reported in August 2021, FTX.US acquired the cryptocurrency derivatives exchange LedgerX with a DCM license.
In December, Crypto.com signed an agreement to acquire Nadex, the CFTC-regulated crypto derivatives exchange.
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