Coinbase announced that its application to operate a derivatives clearinghouse has been approved by the CFTC. The new entity, Coinbase Clearing LLC, is now registered as a derivatives clearing organization under US law. The approval allows the exchange to clear fully collateralized futures, options on futures, and swaps, but does not authorize clearing of its leveraged products.
The move comes as Coinbase continues to build out its derivatives infrastructure. The company stated that the approval completes its end-to-end derivatives infrastructure, enabling it to create new markets and offer them directly to users. As part of this push, the exchange has signaled plans to add Bitcoin and Ether perpetual futures to its offerings.
Coinbase joins rival Kraken in the race to bring US derivatives trading capabilities in-house. Kraken’s parent company acquired Bitnomial and its CFTC-regulated exchange, clearinghouse, and brokerage earlier this year in May. Both exchanges are seeking to capture a share of the growing demand for crypto derivatives among institutional and retail investors.
The CFTC’s approval marks a milestone for Coinbase, which has been laying the groundwork for a broader derivatives platform. The limited scope of the license, however, means the clearinghouse cannot yet clear leveraged products, which remain a significant part of the crypto derivatives market. Coinbase will need to seek separate approval for those instruments as it grows its regulated offerings.