Coinbase acquires FairX in order to launch cryptocurrency derivatives.

Coinbase is purchasing FairX, a CFTC-regulated derivatives exchange.

The exchange business made the announcement on Wednesday, stating, “This is an important step toward Coinbase ultimately making the derivatives market accessible to our millions of customers through an industry-leading, simplified user experience.”

The action might pave the way for Coinbase to offer crypto derivatives in the United States. Only a few exchanges now enable US people to invest bitcoin and ether futures, with cash-settled contracts being both the most popular and the longest-available. Last August, FTX.US bought LedgerX with a similar goal in mind.

Crypto.com, which recently launched a marketing campaign featuring Matt Damon and will be shown in movie theaters and football events, also bought retail derivatives site Nadex late last year.

The crypto exchange platform said:

“Through this acquisition, we plan to bring regulated crypto derivatives to market, initially through FairX’s existing partner ecosystem. Over time, we plan to leverage FairX’s infrastructure to offer crypto derivatives to all Coinbase customers in the US.” 

FairX is a Commodity Futures Trading Commission (CFTC)-registered designated contract market (DCM), which means it is permitted to provide futures products in the United States.

FairX offers a world-class team with strong knowledge in product development, market structure, and compliance. Its market-leading exchange technology and proven ability to supply listed futures in a simple, easy-to-understand framework matches with Coinbase’s mission to enabling a more fair, accessible, efficient, and transparent financial system.

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Patrick

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