Coinbase has obtained a license FCM from CFTC. This will allow select US clients to access cryptocurrency futures trading.
The license for Coinbase Financial Markets, the subsidiary, was issued by NFA, the regulator.
Greg Tousar, Coinbase’s Vice President of Institutional Products, called the approval a “critical milestone” for the company. According to the executive, the crypto-derivatives market accounts for about 75% of digital-asset trading activity.
“The ability to trade using leverage will require smaller initial investments from clients than traditional spot trading. Users will also be able to use risk-management tools for the underlying crypto assets,” said Tousar.
Coinbase filed an application with the NFA in September 2021.
In 2022, the exchange acquired FairX — a CFTC-regulated crypto-derivatives platform that was renamed Coinbase Derivatives Exchange.
The platform is open to third-party brokers, FCMs, and market makers.
According to Tousar, year-to-date bitcoin futures volume on the platform reached $4.7 billion, with Ethereum-based instruments at $2 billion.
Earlier in May 2023, Coinbase opened an international exchange for trading crypto derivatives.