Coinbase has said that it is committed to offering FairX’s retail and institutional clients the most trusted and complete suite of top-notch trading tools to access the crypto-economy. As crypto continues to mature as an asset class and the world’s highly sophisticated investors accelerate the speed of their journey into the crypto-economy, a healthy, and well-regulated derivatives market will be crucial for long-term success.
FairX is a CFTC-regulated derivatives exchange or Designated Contract Market and its acquisition by Coinbase represents the next step toward the creation of a strong and holistic trading environment which most investors are seeking currently.
Through that purchase, Coinbase wants to introduce regulated crypto derivatives to the market, at first using FairX’s existing partner ecosystem. The company said in its statement:
“Over time, we plan to leverage FairX’s infrastructure to offer crypto derivatives to all Coinbase customers in the US. 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.”
The deep and liquid derivatives markets are crucial to the operation of traditional capital markets. All these products are in high demand from different investors seeking to manage risks effectively, execute some complex trading strategies, and gain some exposure to cryptocurrencies outside the spot markets.
Coinbase said that the development of a transparent derivatives market is an important inflection point of any asset class. Thus, it might help in unlocking more participation in the crypto-economy for the retail and institutional investors.
FairX comes with a world-class team that has deep expertise across the market structure, product development, and compliance to Coinbase. The market-leading exchange technology and tested ability to deliver the listed futures in a clear, easy-to-understand structure that aligns with Conbase’s commitment to creating a fairer, efficient, accessible, and transparent financial network powered by crypto.
The purchase is subject to customary closing conditions and reviews. It is also expected to close in Coinbase’s first fiscal quarter. Through the deal, FairX will work normally during the period.
