Coinbase Debuts Regulated Crypto Futures Trading for US Customers
- Coinbase has debuted new regulated crypto futures services for customers based in the US.
- Users will have access to nano-sized futures contracts along with a library of educational content.
- The futures contracts will be focused on two cryptocurrencies, Bitcoin (BTC) and Ether (ETH).
- The contracts are pegged at 1/100th of a Bitcoin and 1/10th of an Ether, allowing lower upfront investments.
Coinbase, the largest digital asset trading platform in the United States, has debuted crypto futures services for customers in the US amid regulatory concerns in the country regarding digital assets. The company will be offering its users access to nano-sized futures contracts along with a library of educational content.
As per the official announcement, the crypto exchange will debut crypto futures services in the US four months after Coinbase Financial Markets (CFM) secured approval from the National Futures Association (NFA), a Commodity Futures Trading Commission-designated self-regulatory organization. Approval is a necessity for exchanges to offer futures services in the US.
Customers based in the US now have access to crypto futures contracts on Coinbase Advanced, a trading platform for sophisticated retail traders. The exchange stated in a blog post that its Advanced feature “offers powerful tools like advanced order types, TradingView charts, and APIs to automate trading,” while adding:
“Traders will need to have an existing account on Coinbase Inc. for spot trading before opening a Coinbase Financial Markets futures account.”
As per the blog post, Coinbase confirmed that customers will be offered access to nano-crypto futures contracts focusing on two cryptocurrencies, Bitcoin (BTC) and Ether (ETH). The contracts are pegged at 1/100th of a Bitcoin and 1/10th of an Ether, offering lower upfront capital requirements and an affordable investment option for retail customers.
Further, users will have access to learning materials that will include a suite of articles covering important topics like the basics of futures, trading futures, risks and rewards, etc. The exchange said that US users can begin trading futures with Coinbase Financial Markets by signing in with Advanced, where they’ll see a new Futures section on the left menu alongside Spot, Portfolio, Orders, and More.
“Apply to trade futures with Coinbase Financial Markets. Financial regulations require us to confirm your personal information and ask you a few questions about your financial background and investment experience,” the company added.
As reported earlier by BitcoinWisdom, the rivalry between the leading American exchanges and the United States Securities and Exchange Commission (SEC) continues to grow. Recently, the exchange asked a New York judge to dismiss the lawsuit filed by the regulator against the exchange, claiming that the SEC was out of bounds. Further, the exchange has now shifted its focus to expanding to non-US markets like Singapore, Spain, the EU, Canada, and other regions.