Popular US cryptocurrency exchange Coinbase has reportedly a request filed to become a registered Futures Commission Merchant with the US National Futures Association.
Continue to grow the crypto economy
Coinbase has informed that this step has been taken to broaden the crypto company’s offerings. Its purpose is to further grow the crypto economy.
If the application is approved, Coinbase also needs to register with the US derivatives regulator, in order to eventually get the green light. So there are even more steps associated with this process than just this specific request.
Crypto Derivatives Have Become Hugely Popular
While many regulatory steps have been taken over the past year, which have also impacted the crypto derivatives markets, they have become hugely popular. Data from CoinGecko shows that crypto derivatives markets worldwide have processed more than $143 billion in the past 24 hours.
Still, Coinbase hopes this process will run a little smoother than their plans to launch a crypto lending product. Coinbase previously planned to offer USD coins (USDC). However, the US Securities and Exchagne Commission (SEC) has threatened to sue the company. This would happen when they actually started offering the coins. The company is therefore reconsidering this plan and may also be looking at alternatives.
Coinbase also launched a debt offering, with the company selling $2 billion worth of junk bonds. Reportedly, the crypto company received a lot of support from a huge number of investors. As a result, orders had reportedly been placed for $7 billion, of which ‘only’ $2 billion could be filled. Do you want to know more about this? Click here to go to the relevant article.