Coinbase Advanced, a service offered by Coinbase, now allows retail traders in the United States to access regulated crypto futures contracts. The move comes after Coinbase Financial Markets (CFM) obtained regulatory approval to operate a Futures Commission Merchant (FCM) entity. The National Futures Association (NFA) granted CFM the approval, allowing it to offer crypto futures services to eligible U.S. traders.
Coinbase Advanced offers retail traders in the United States the ability to trade nano-sized futures contracts. These contracts are sized at 1/100th of a Bitcoin and 1/10th of an Ether. This approach is designed to reduce the upfront capital requirements and make futures trading an affordable option for a broader range of retail customers.
In addition to regulated, leveraged, and cash-settled crypto futures, Coinbase Advanced users will have access to educational content through Coinbase Learn. The service is available on the web version and will soon be available on mobile devices.
This move by Coinbase comes as the platform saw a decrease in spot trading volume in 2023 compared to the previous year. Despite the decline in spot trading volume, Coinbase has been gaining market share, particularly as other exchanges like Binance face increased regulatory scrutiny.