The largest crypto exchange in the US, Coinbase, has recently applied for future crypto trading. They have submitted the application to National Futures Association to become a futures commission merchant. Until now, Coinbase just had the option to buy/sell tokens and coins. Anyone who wanted to trade had to use some other platform. But since it’s not easy to trust each and every exchange, Coinbase’s entry into future trading is much appreciated.
Coinbase is bringing future crypto trading
The NFT website shows an application under the name Coinbase Global dated September 15th. After a while, they even tweeted it out, saying that this is their attempt to bring more products to their platforms. Futures and derivatives are widely used in crypto exchanges, and their addition to Coinbase is only going to benefit their revenue from here on.
But there is still some way to go. This is because after Coinbase gets approval from the NFA, they also need to register with the derivatives platform. Once they do so, Coinbase will have the approval to start giving users the future options. This move also solidifies Coinbase’s vision of bringing as many crypto offerings to their platform as possible.
The derivatives market is big.
While Binance and many other platforms are facing regulations regarding their future trade offerings, Coinbase is on the move to start them. The derivatives market is much larger than the spot market due to the exchange’s huge leverage options. Hundreds of billions of dollars are processed in every top crypto exchange every day in terms of future trade. This is the reason that Coinbase sees it as a big opportunity.
Since Binance won’t be offering crypto services in a lot of places, Coinbase could easily take in their users with this one option. Do note that the company also planned to enter the crypto lending business, but the SEC warned them without citing any reason. A very big lawsuit might just be around the corner as the entire crypto community is urging Coinbase to stand up to this.
What are your thoughts on Coinbase applying to enable future crypto trading? And do you think the request will be approved by the NFA? Let us know in the comments below. Also, if you found our content useful do like and share it with your friends.
Also Read: Who is Buying jpeg NFTs for Millions and Why?