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September 17, 2021

Coinbase Announces Ambitious Plans To Expand Customer Offerings on Its Platforms

By Daily Hodl Staff

US crypto exchange Coinbase is seeking membership with the National Futures Association (NFA) amid proposed plans to expand its customer offerings.

The company says it is pushing to offer futures and derivatives trading on its platforms.

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In an interview with The Scoop podcast, head of institutional sales Brett Tejpaul said that Coinbase is already working on the formation of a derivatives market as part of a roadmap to attract more clients.

Coinbase tells its 3.3 million followers on Twitter that it has already filed an application with the NFA, the self-regulatory organization for the US derivatives industry, to register as a Futures Commission Merchant (FCM). 

The function of an FCM is to solicit or accept orders to buy or sell futures contracts or options on futures. Entities that engage in these services need to be designated as a Forex Dealer Member and must be a member of the NFA.

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The move comes on the heels of Coinbase raising $2 billion dollars as a debt offering in order to bolster its balance sheet and invest for general corporate purposes.

At time of writing, Coinbase is still listed as a pending NFA member.

Featured Image: Shutterstock/Tithi Luadthong