Coinbase Acquires Fairx Exchange to Make Derivatives Market Approachable for Millions of Retail Customers

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Nasdaq-listed cryptocurrency exchange Coinbase has acquired a regulated derivatives trading platform. Coinbase plans to make the derivatives market more approachable to millions of its retail customers.

Coinbase Plans to Offer Crypto Derivatives to All US Customers

Nasdaq-listed crypto exchange operator Coinbase announced 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 Contract 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 US.”

The Nasdaq-listed company added:

We want to make the derivatives market more approachable for our millions of retail customers by delivering an easy-to-use user experience that Coinbase is known for.

Coinbase further noted, “Deep and liquid derivatives markets are essential to the functioning of traditional capital markets,” elaborating:

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 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 period.