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 customers.
Coinbase plans to offer crypto derivatives to all US customers
Coinbase, a Nasdaq-listed crypto exchange, announced on 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 contracts market (DCM).
“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 United States.”
The Nasdaq-listed company added:
We want to make the derivatives market more accessible for our millions of retail customers by providing an easy-to-use user experience that Coinbase is known for.
Coinbase further noted that “deep and liquid derivatives markets are essential to the functioning of traditional capital markets,” stating:
These products are in high demand by investors looking to effectively manage risk, execute complex trading strategies, and gain exposure to crypto outside of 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 operate normally during this time.
What do you think of the acquisition of Fairx by Coinbase to offer derivatives trading to its retail customers? Let us know in the comments section below.
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