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Coinbase to allow crypto derivatives after FairX acquisition

13 Jan 2022 : 01:37
2 min read
  • Coinbase has acquired FairX, a CFTC-regulated derivatives exchange
  • The exchange will leverage FairX's infrastructure to provide derivates products
  • The deal is still being finalized and is expected to complete by Q1 2022

Coinbase, the biggest cryptocurrency in the United States, plans on increasing its user base even further after announcing the launch of crypto derivatives on the exchange. The firm has acquired FairX, a CFTC-regulated derivatives exchange, to facilitate this new feature. 

Coinbase acquires FairX

Coinbase has been expanding quite aggressively in an attempt to provide better services to its users. As per the announcement, the crypto exchange is set on a new path of creating “a robust and regulated crypto derivatives market.”

“The acquisition is a key stepping stone on Coinbase’s path to offer crypto derivatives to retail and institutional customers in the US,” said the exchange.

The exchange said that the ultimate goal is to provide millions of its customers’ access to crypto derivates services but in a regulated manner and an “industry-leading, simplified user experience.”

At first, Coinbase will provide derivates services through FairX’s existing partner ecosystem and later leverage its infrastructure to provide the same services for users in the US. 

Derivates coming in 

As per the crypto exchange, derivates products markets should be deep and liquid, which are essential features “to the functioning of traditional capital markets.”

“These products are in high demand from investors who seek to effectively manage risk, execute complex trading strategies, and gain exposure to crypto outside of existing spot markets,” said Coinbase.

Coinbase further stated that the acquisition of FairX is currently subject to review, and closing conditions are being determined. Moreover, the deal is expected to close in the first quarter of the fiscal year.

The firm’s expansion of services and partnerships is well-known. Recently, Coinbase partnered with Thirty Five Ventures, founded by Kevin Durant and also, launched the DeFi Yield product in over 70 countries.

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