Coinbase Buys FairX, Pushing Hard Into Crypto Derivatives

On Wednesday, Coinbase announced its acquisition of FairX, a derivatives exchange regulated by the U.S. Commodity Futures Trading Commission. The company says this is the next logical step toward creating a complete, one-stop trading environment for investors. Through this acquisition, Coinbase plans to bring regulated crypto derivatives – contract bets based on future price action either up  or down – to market. 

Over time, Coinbase will use FairX’s infrastructure to provide crypto derivatives to all Coinbase customers in the U.S., with a goal of making the derivatives market more accessible to its millions of retail users. Coinbase plans to provide an intuitive user experience along with learning resources as well. 

“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 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 crypto-economy for retail and institutional investors alike,” 

the company stated in its official announcement. 

The acquisition is subject to customary closing conditions and reviews, and is expected to close in Coinbase’s first fiscal quarter. FairX will operate normally during that time frame.