Coinbase plans to offer derivatives trading following acquisition of FairX

Leading cryptocurrency exchange Coinbase has recently acquired derivatives exchange FairX to offer derivatives trading to its millions of retail customers in the United States in the near future.

Coinbase to make derivatives market more approachable

The third-largest digital asset exchange in the world by 24-hour volume has announced the move to acquire FairX, a Commodity Futures Trading Commission (CFTC) regulated derivatives exchange.

According to the official announcement by Coinbase, the exchange stated that the acquisition “is an important step toward Coinbase ultimately making the derivatives market accessible” to its millions of customers through an “industry-leading, simplified user experience.”

The leading crypto exchange will be looking to offer regulated crypto derivatives to market, initially through the FairX existing partner ecosystem. Coinbase also plans to leverage FairX’s infrastructure to allow all US customers access to crypto derivatives. 

The deal is currently still subject to customary closing conditions and reviews but is expected to close in Coinbase’s first fiscal quarter. 

Coinbase further stated in a tweet that the offering of a “transparent derivatives market will unlock further participation in the crypto economy for retail and institutional investors alike.”

The crypto derivatives market accounts for nearly roughly $137 billion in 24-hour trading volume, a far reach above the spot trading volume across digital asset exchanges at $55 billion in the same period.

According to Coinbase, as cryptocurrency matures as an asset class, the world’s most sophisticated investors will likely “deepen their journey into the cryptoeconomy.” Therefore, the exchange believes that a well-regulated derivatives market will be critical for long-term success.