Cryptocurrency exchange Coinbase has secured regulatory approval from the National Futures Association to offer access to eligible US customers to crypto futures. Considering this announcement, Coinbase will be the first crypto-native company to directly offer traditional spot crypto trading together with regulated and leveraged crypto futures, on an integrated trading solution for their verified customers.

Through the access to CFTC-regulated crypto derivates market, broader participation in the crypto economy will be enabled, therefore leading to significant growth. Coinbase filed its application to register an FCM with the NFA in September 2021, their objective being to ensure that they are compliant with all the necessary regulations and that the business model meets the CFTC’s requirements for customer protection. As per the information provided by Coinbase, the global crypto derivatives market represents approximately 75% of crypto trading volume worldwide, therefore being a critical trader access point.

Customers gain leverage and access to the crypto market through the ability to trade using margin, resulting in a decreased upfront investment than traditional spot trading. The acquisition of FairX in 2022 was supported by the product benefits, the CFTC-regulated futures exchange known as the Coinbase Derivatives Exchange now. After the acquirement, the exchange launched nano Bitcoin and Ethereum futures contracts, sized for the retail investor, and in June 2023, larger versions for the institutional market have been introduced.

As the Coinbase Derivated Exchange is open to third-party brokers, FCMs, and market makers, a deep liquidity pool has been established, amounting to USD 4,7 billion BTC and USD 2 billion ETH futures traded in notional volume thus far in 2023. More information about Coinbase According to Backlinko’s report, Coinbase has 56 million verified users, of which 6 million make at least one transaction per month. Based on the statistics from Finder, Coinbase had its largest year-on-year user growth between 2021 and 2022, when the growth reached 92.8%.

However, over the last year, the number of monthly transacting users has declined, even if the base has increased steadily from 2018 to 2022. In January 2023, Coinbase shared their statistics regarding the use of their two-factor authentication technologies and the associated Account Take Over, to offer transparency to their customers, and make them aware of the risks. In August 2023, Coinbase launched in Canada, supported by the integration of Interac payment rails, banking and payment partners, enabling fund transfers and including Coinbase One.

The expansion was driven by Canada’s crypto-awareness and its local technological ecosystem, the country potentially becoming a global leader in the crypto economy. Back in March 2023, Coinbase partnered with Pix, working towards expanding its operations in Brazil. The partnership enabled deposits and withdrawals from Coinbase accountants, while also offering easier access to opening an account.

.