With the ever-broadening number of incorporations in the crypto industry, it’s a given to see crypto futures and derivatives. In fact, as of lately, many popular crypto exchanges are planning to offer crypto futures and derivatives trading. Recently, US-based crypto exchange Coinbase has applied to offer derivatives & futures on its platform.
Coinbase Global Inc. has applied with the National Futures Association (NFA) to register as a Futures Commission Merchant (FCM). The crypto exchange announced this on Wednesday through their Twitter account. They wrote:
“This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms.“
They also added about their goal to ‘further grow the cryptoeconomy.’ According to the filling, the company is registered as Coinbase Financial Markets Inc.
Crypto derivatives are one of the fastest-growing financial instruments in the crypto industry. Many major crypto exchanges like Binance, Okex, FTX, CME Group, and Kraken offer derivatives trading.
Moreover, Coinbase had announced that it had acquired Skew, a crypto data analytics firm specialising in the derivatives & futures market. Many had speculated then that the crypto exchange will offer the option soon.
Currently, Coinbase is raising funds through the issue of bonds. Initially, the crypto exchange planned to issue $1.5 billion worth of senior notes. However, due to high interest, they raised the amount to $2 billion. Overall, Coinbase intends to use the proceeds from the offering “for general corporate purposes, which may include continued investments in product development, as well as potential investments in or acquisitions of other companies, products, or technologies that Coinbase may identify in the future.”