Cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN), on Wednesday announced that it has secured approval to offer federally regulated crypto futures trading to eligible customers in the United States.
This development comes after the company filed an application with the National Futures Association (NFA) in September 2021 to register as a Futures Commission Merchant (FCM).
The approval will allow eligible U.S. customers to access regulated derivatives products through Coinbase Financial Markets, subject to the oversight of the Commodity Futures Trading Commission (CFTC) and the NFA.
Coinbase stated that the global crypto derivatives market accounts for approximately 75% of crypto trading volume worldwide, making it a critical access point for traders.
The ability to trade using margin allows customers to leverage their investments and access the crypto market with less upfront capital.
Derivatives also enable investors to manage risk on their underlying crypto assets by expressing long and short positions, the company added.
Coinbase's acquisition of FairX in 2022, now known as the Coinbase Derivatives Exchange, laid the groundwork for this expansion into the derivatives market.
The company further stated that since the acquisition, the exchange has launched nano Bitcoin and Ethereum futures contracts, tailored for retail investors, and larger versions for the institutional market.
In the coming months, Coinbase plans to provide additional information on how its verified U.S. customers can access its futures offering.