Coinbase Launches Crypto Derivatives Trading In US After CFTC Approval

Coinbase CEO Brian Armstrong shared a major feat for the exchange today. The exchanges derivatives business Coinbase Financial Markets has announced it is the first regulated futures commission merchant (FCM) in the United States. It can offer institutional users access to crypto perpetual futures and options markets worldwide.

Coinbase Introduces Derivatives Trading For US Traders

The company stated the move opens up a part of the digital asset market that has largely been inaccessible to US traders in regulated frameworks.

For context, crypto derivatives make up almost 80% of all global digital asset trading volume. Moreover, perpetual futures and options dominating the crypto trading volume on offshore exchanges, Coinbase noted.

The crypto exchange also spotlighted that the market is creating trillions of dollars in annual trading. However, the United States didnt have a compliant domestic access point, it added.

According to Coinbase, the guidance issued by the Commodity Futures Trading Commission (CFTC) is what made it possible. The recent decision allows Coinbase Financial Markets to provide access to international crypto derivatives liquidity to US clients. The offering provides access to one of the worlds largest crypto options exchanges.

Further, the company states that institutions can now start onboarding immediately on its crypto derivatives platform. Meanwhile, Bitcoin options are already available via the platform on Deribit. More contracts, collateral support, and perpetual futures products will follow, Coinbase said.

“US clients will at long last have a fully regulated, compliant solution to access all of cryptos largest markets,” the exchange added.

The firm also drew attention to institutional traders operational issues over the past few years. Coinbase noted that some companies set up a foreign company to get exposure to crypto derivatives markets. However, previously, this came with a higher infrastructure cost and counterparty risk.

“Through a single CFTC-regulated FCM, US clients can now access global crypto perps and options on futures, without the offshore workarounds,” the company stated.

Big day for our US-based traders, and for Coinbase.

Until now, US users have been locked out of ~80% of global crypto markets (perpetual futures and options). But not anymore!

Brian Armstrong added in his post on X that it was a “big day” for US crypto traders. He further added, “Until now, US users have been locked out of ~80% of global crypto markets (perpetual futures and options). But not anymore!”

He said that Coinbase is now “the first and only regulated platform able to connect US users to global crypto options and perpetual futures.” Armstrong also noted that users will have access to Deribits Bitcoin options market. For context, these options have over $31 billion in open interest.

Strategy‘s Michael Saylor reposted Armstrong’s post to support the move. It comes after Strategy dumped over $30 million on Coinbase.