Coinbase has announced that it will acquire the FairX futures exchange with the aim of offering crypto derivatives to US investors.
The acquisition of FairX, which lists futures contracts that track markets including stock indices and oil, comes four months after Coinbase applied for membership in the National Futures Association, the leading commodity self-regulatory organization. derivatives in the United States.
Coinbase handles the second-largest spot trading volume in cryptocurrencies behind Binance, with a 24-hour trading volume of $3.8 billion, according to CoinMarketCap. But crypto derivatives trading volume now exceeds spot trading, hitting $2.9 trillion in December.
Financial exchange operators, including CME Group, “have begun offering crypto futures to provide an established and regulated venue for traders to speculate or hedge their holdings,” according to the Financial Times.
Coinbase said the FairX deal “represents our next step toward creating the robust and holistic trading environment that investors are looking for.” The company plans to initially offer crypto derivatives through FairX’s “existing partner ecosystem” but, over time, will “leverage FairX’s infrastructure to offer crypto derivatives to all Coinbase customers in the United States” .
“Developing a transparent derivatives market is a critical inflection point for any asset class and we believe it will unlock greater participation in the crypto economy for retail and institutional investors,” Coinbase said. in a blog post.
As CoinDesk reports, “Currently, only a handful of exchanges allow U.S. investors to trade bitcoin and ether futures, with cash-settled products being both the most popular products and the lowest. no longer available.”
When it launched last year, FairX said it would aim to offer “simpler and more accessible futures contracts for active individual investors”. It has relationships with major brokerages including TD Ameritrade, E*Trade, ABN AMRO, Wedbush and Virtu Financial.
In other recent crypto derivatives exchange deals, Crypto.com bought Nadez and FTX acquired LedgerX.
FairX’s “market-leading exchange technology and proven ability to deliver quoted futures in a simple, easy-to-understand structure aligns with Coinbase’s commitment to creating a fairer, more accessible financial system. , efficient and transparent through crypto,” Coinbase said. .