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FTX.US and Coinbase join international derivatives organization ISDA to establish "common standards" for the crypto market.

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FTX.US and Coinbase join international derivatives organization ISDA to establish "common standards" for the crypto market.

The cryptocurrency market has seen significant growth in the past two years. According to CoinMarketCap data, the total market capitalization of cryptocurrencies has reached $2.26 trillion, which is more than ten times the value at the beginning of 2020. The International Swaps and Derivatives Association (ISDA) announced recently that it is working on establishing universal standards and product templates for this multi-trillion dollar market. Previously, Coinbase and FTX.US have joined ISDA.

FTX.US and Coinbase Join ISDA Association

In line with this trend, both Coinbase and FTX.US exchanges joined the ISDA last week, becoming members of the association. Currently, the association has approximately 960 members from around the world. The members of the association are divided into three categories: Primary (mostly banks), Associate (professional firms), and Subscriber (asset management companies, broker-dealers).

This decision did not come as a surprise to the market. Coinbase's main business is spot trading, but to compensate for the lack of derivatives, it submitted a registration to the National Futures Association (NFA) in September to become a merchant of the Commodity Futures Trading Commission.

FTX.US, on the other hand, completed the acquisition of LedgerX, obtaining three CFTC (Commodity Futures Trading Commission) compliance licenses from LedgerX, including DCM, DCO, and SEF licenses.

Regarding their membership in the association, both exchanges did not make many statements.

FTX founder Sam Bankman-Fried only expressed his anticipation to collaborate with ISDA and Scott O’Malia on Twitter, and they will continue to develop the derivatives market.

"We look forward to working with ISDA and CEO Scott O’Malia, and we will continue to build the crypto derivatives market in the U.S. and globally."