The Nasdaq-listed cryptocurrency exchange Coinbase has acquired a regulated trading platform for derivatives. Coinbase plans to make the derivatives market more accessible to millions of its retail customers.
Coinbase plans to offer crypto derivatives to all US customers
Nasdaq-listed crypto exchange operator Coinbase announced on Wednesday that it had acquired Fairx, a regulated derivatives trading platform.
Fairx is regulated by the Commodity Futures Trading Commission (CFTC) as a futures exchange or Designated Contract Market (DCM).
“With this acquisition, we plan to bring regulated crypto derivatives to market, initially through Fairx’s existing partner ecosystem,” explained Coinbase. “Over time, we plan to use Fairx’s infrastructure to offer crypto derivatives to all Coinbase customers in the US.”
Listed on the Nasdaq, the company added:
We want to make the derivatives market more accessible to our millions of retail customers by delivering the easy-to-use user experience that Coinbase is known for.
Coinbase further stated, “Deep and liquid derivatives markets are essential for the functioning of traditional capital markets,” and states:
These products are in great demand from investors who are trying to manage risk effectively, execute complex trading strategies, and gain exposure to cryptocurrencies outside of the existing spot markets.
The acquisition of Fairx is subject to customary closing conditions and reviews. Coinbase expects the deal to close in the first fiscal quarter. In the meantime, Fairx will work normally during this time.
What do you think of Coinbase’s takeover of Fairx to offer its private customers trading in derivatives? Let us know in the comment section below.
Kevin, a student of Austrian economics, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.
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