The company said on Wednesday that Coinbase Global has received approval from the National Futures Association to offer crypto futures contracts to eligible US clients.
The largest crypto exchange in the United States in September 2021 Apply to the NFAwhich is a self-regulatory organization overseen by the Commodity Futures Trading Commission, is required to register as a commission futures trader, which is essentially a brokerage that allows investors to buy and sell futures contracts on the Coinbase platform.
Futures are contracts that allow traders to bet on whether markets such as oil, wheat, or the S&P 500 index will rise or fall. Traders who want to buy or sell futures contracts must provide cash collateral, called margin, at FCM.