Coinbase Buys FairX, Targets Crypto Derivatives Push
Posted by Colin Lambert. Last updated: January 13, 2022
Coinbase has announced the acquisition of FairX, a CFTC-regulated derivatives exchange, a move that represents the crypto firm says, a key stepping stone on its path to offer crypto derivatives in the US.
With the deal, which is believed to be valued at $115 million, Coinbase says it plans to bring regulated crypto derivatives to market, initially through FairX’s existing partner ecosystem. Over time, it says, however that it will 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 firm states.
Coinbase observes that deep and liquid derivatives markets are essential to the functioning of traditional capital markets, adding the 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 cryptoeconomy for retail and institutional investors alike,” the firm says.
The acquisition is subject to customary closing conditions and reviews, and is expected to close in Coinbase’s first fiscal quarter and FairX will operate normally during this period, Coinbase says.