Nasdaq-listed cryptocurrency exchange Coinbase has acquired a regulated derivatives trading platform. Coinbase plans to make the derivatives market more accessible to millions of its retail clients.
Coinbase plans to offer crypto derivatives to all US customers.
Coinbase, a Nasdaq-listed cryptocurrency exchange, announced Wednesday that it has acquired Fairx, a regulated derivatives trading platform.
Fairx is regulated by the Commodity Futures Trading Commission (CFTC) as a derivatives exchange or Designated Contract Market (DCM).
“Through this acquisition, we plan to bring regulated cryptocurrency derivatives to the market, initially through Fairx’s existing partner ecosystem,” Coinbase detailed. “Over time, we plan to leverage Fairx’s infrastructure to offer cryptocurrency derivatives to all Coinbase customers in the US.”
The Nasdaq-listed company added:
We want to make the derivatives market more accessible to our millions of retail customers by offering the easy-to-use user experience that Coinbase is known for.
Coinbase further noted, “Deep and liquid derivatives markets are essential to the functioning of traditional capital markets,” elaborating:
These products are in high demand from investors looking to manage risk effectively, execute complex trading strategies, and gain exposure to cryptocurrencies outside of existing spot markets.
The Fairx acquisition is subject to customary closing and review conditions. Coinbase expects the deal to close in the first fiscal quarter. In the meantime, Fairx will operate normally during this period.