Coinbase acquires derivatives exchange FairX

American crypto exchange Coinbase has acquired CFTC-regulated derivatives exchange FairX and has revealed plans to start offering derivatives trading to US customers in the future.

The company stated:

Coinbase is committed to providing our retail and institutional customers with the most trusted and complete suite of trading tools to access the cryptoeconomy. As crypto matures as an asset class and the world’s most sophisticated investors deepen their journey into the cryptoeconomy, a healthy, well-regulated derivatives market will be critical for long-term success.

Launched in May 2021, FairX is a Designated Contract Market (DCM) derivatives exchange. The company has secured brokerage partnerships with industry leaders such as TD Ameritrade and E*Trade.

Coinbase confirmed its plans to offer crypto derivatives and make the derivatives market more approachable for its retail customers.

The official announcement said:

Through this acquisition, we plan to bring regulated crypto derivatives to market, initially through FairX’s existing partner ecosystem.

Following its announcement, Coinbase explained in a tweet that adding derivatives trading to its product offering would ultimately benefit investors on its platform.

The creation of a transparent derivatives market will unlock further participation in the cryptoeconomy for retail and institutional investors alike.

There is high demand for derivatives products among investors looking to manage risk effectively, execute complex trading strategies, and gain exposure to crypto outside of existing spot markets. Coinbase revealed that the development of a transparent derivatives market is a key goal.

The transaction is expected to close in Coinbase’s first fiscal quarter.

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