Coinbase, a Nasdaq listed cryptocurrency exchange has purchased a licensed derivatives trading platform. Coinbase intends to open the market to more of its retail customers by making it easier to access derivatives markets.
Coinbase to offer Crypto Derivatives for All US Customers
Coinbase, an NADAQ-listed cryptocurrency exchange operator, announced Wednesday it had acquired Fairx a licensed derivatives trading platform.
Fairx is regulated as a derivate exchange (or Designated Contract Market) by the Commodity Futures Trading Commission.
“Through this acquisition, we plan to bring regulated crypto derivatives to market, initially through Fairx’s existing partner ecosystem,” Coinbase detailed. “Over time, we plan to leverage Fairx’s infrastructure to offer crypto derivatives to all Coinbase customers in the US.”
Nasdaq added the following:
Our goal is to make derivatives markets more accessible for millions of our retail customers. We offer the same easy-to use user experience as Coinbase.
Coinbase further noted, “Deep and liquid derivatives markets are essential to the functioning of traditional capital markets,” elaborating:
This product is highly sought after by investors looking to reduce risk, implement complex trading strategies and have exposure to crypto beyond existing spot markets.
Fairx acquisition is subject to normal closing conditions and review. Coinbase anticipates that the transaction will close within the first quarter. Fairx will continue to operate as normal during the interim.
What do you think about Coinbase’s acquisition of Fairx to offer derivatives trading to its retail customers? Comment below.
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