Coinbase Buys FairX, Pushing Hard Into Crypto Derivatives By DailyCoin

Listen to this article

Coinbase Buys FairX, Pushing Hard Into Crypto Derivatives

On Wednesday, Coinbase (NASDAQ:) 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.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7]
You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.