Coinbase stock gains after getting approval for crypto futures platform

Coinbase Global ( NASDAQ: COIN ) stock rose 3.8% in Wednesday premarket trading after the cryptocurrency exchange said it received regulatory approval to offer eligible U.S. customers access to crypto futures from its platforms. "Coinbase ( COIN ) will now be the first crypto-native leader to directly offer traditional spot crypto trading alongside regulated and leveraged crypto futures, on an integrated trading solution for our verified customers," the company said in a statement. Specifically, the company received approval from the NFA, a CFTC-designated self-regulatory organization, to operate a futures commission merchant (FCM). Coinbase ( COIN ) had filed the application to register as an FCM in September 2021. The global crypto derivatives market represents about 75% of crypto trading volume worldwide, Coinbase said. "The ability to trade using margin gives customers leverage and access to the crypto market with less upfront investment than traditional spot trading," it added. In addition, using derivatives to take long and short positions gives investors the ability to manage risks on their underlying crypto assets. For such benefits, Coinbase ( COIN ) acquired FairX in 2022, a CFTC-regulated futures exchange now known as the Coinbase Derivatives Exchange. The exchange is open to third-party brokers, FCMs, and market makers. The company said it will provide in coming months additional information to its verified U.S. customers on how to access futures offerings. While Coinbase ( COIN ) shares are trading in the green, crypto prices are mostly in the red. Bitcoin ( BTC-USD ) slipped 0.6% to $29.1K, ethereum ( ETH-USD ) -0.8% to $1.82K, Binance coin ( BNB-USD ) -1.7%, XRP ( XRP-USD ) -4.1%; cardano ( ADA-USD ) -3.5%. More on Coinbase Coinbase Undervalued At 4.4x 2021 Earnings Adjusted For Underlying Asset Value Coinbase Global, Inc. ( COIN ) Oppenheimer Technology, Internet & Communications Conference (Transcript) Coinbase accelerates Canada push with Interac e-transfers, zero trading fees Coinbase's new Base blockchain launches to the public Seeking Alpha’s Quant Rating on Coinbase Earnings data for Coinbase