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23 January 2022
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Coinbase Acquires FairX, Plans To Make Derivatives Market Accessible For All

  • Coinbase has now acquired FairX to introduce regulated crypto derivatives in the market. Yet, in the beginning, Coinbase plans to do this via the present partnered ecosystem of FairX.
  • Coinbase also revealed that it would use Fairx’s infrastructure to offer crypto derivatives to its clients, simultaneously serving ease of access to the derivatives market.
  • Coinbase made this announcement in its blog post published on 13 January, where it said that the FairX gives them a world-class team, and its abilities line’s up with Coinbase’s commitments.

A recent announcement by the Nasdaq-listed crypto exchange platform, Coinbase, revealed on Wednesday that it has acquired a regulated derivatives trading platform, FairX. The derivatives exchange platform is regulated by the CFTC (Commodity Futures Trading Platform) as a DCM (Designated Contract Market) or derivatives exchange.

Coinbase is an American organization that operates as a cryptocurrency exchange platform and offers services of transferring, buying, storing, and selling cryptocurrencies. On the other hand, FairX was established by leading industry firms and is aimed to offer futures products that meet the needs of active retail investors worldwide, by serving direct and easy-to-understand right-sized, low-cost exposure to benchmark tracking liquid asset classes.

Coinbase’s Aim For Acquisition

Following the acquisition, Coinbase explained that it would introduce regulated crypto derivatives to the market via this acquisition. However, in the beginning, this would be done through the present partnered ecosystem of FairX. The future plans of Coinbase include using the infrastructure of FairX to serve crypto derivatives for all clients of Coinbase in the US.

Coinbase further said that they aim to bring ease-of-access to the derivatives market for their millions of retail clients, by offering an easy-to-use user experience which Coinbase is already popular for. It explained that liquid and deep derivatives markets are quite important for traditional capital markets to function. It said that such products have very high demand from those who look forward to managing risks efficiently, gathering exposure of cryptocurrency from other present spot markets, and executing strategies for complex trading.

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As per Coinbase, the acquisition of FairX by Coinbase is subject to customary reviews and closing conditions. Coinbase also expects the deal to be closed by the first fiscal quarter where FairX is set to operate as usual in the time frame.

FairX’s Abilities & Coinbase’s Commitments

The announcement was made by Coinbase in a blog post on January 13, where it said that FairX gives Coinbase a world-class team that has expertise in market structure, compliance, and product development. FairX’s ability to deliver futures in a direct and easy-to-understand manner and its market-leading technology of exchange line’s up with the dedication of Coinbase to create a more efficient, transparent, accessible, and fair financial system powered by cryptocurrency.

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