You Can Soon Trade Crypto Derivatives On Coinbase Thanks To FairX Acquisition

13th January 2022
You Can Soon Trade Crypto Derivatives On Coinbase Thanks To FairX Acquisition
Marco Verch

Coinbase has acquired FairX in an effort to bring crypto derivative trading to its users.

FairX is a Chicago-based commodity futures trading Commodity Futures Trading Commission (CFTC ) regulated derivatives exchange.

Derivatives are financial instruments that allow traders to speculate on asset price movements without needing to own the underlying asset itself. The four most common derivative instruments are forwards, futures, options and swaps.

In a blog post, Coinbase said the acquisition was an “important step” to making the derivatives market accessible to their millions of customers.

“Deep and liquid derivatives markets are essential 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,” the statement reads.

“The development of a transparent derivatives market is a critical inflection point for any asset class and we believe it will unlock further participation in the cryptoeconomy for retail and institutional investors alike.”

Coinbase described FairX as having a “world-class team with deep expertise” and highlighted how its “proven ability to deliver listed futures in a straightforward, easy-to-understand structure” aligns with them.

The acquisition deal is expected to finalise during the first quarter. Crypto derivative trading will be rolled out to Coinbase’s US customers first.

Crypto derivative trading is currently available on Binance, FTX, Bybit and OKEx.

Coinbase’s share price rose 3.75% in after hours trading following the acquisition announcement.

Written by Bread News Team
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