Coinbase gets in with a deal for the appointment exchange in crypto derivatives

Coinbase buys a still young futures exchange to gain a foothold in cryptocurrency derivatives, and complements its presence as the largest US spot exchange for crypto.

The company announced on Wednesday that Fairx will take over, which was launched last year and will be regulated by the US Commodity Futures Trading Commission.

"With this takeover we plan to bring regulated crypto derivatives onto the market, first through the existing partner ecosystem from Fairx," said Coinbase. "Over time, we plan to use the Fairx infrastructure to offer all coinbase customers in the USA crypto derivatives."

The takeover takes place, since other financial market operators, including the CME Group, have started to offer crypto futures in order to provide an established, regulated location, to speculate or protect themselves against their stocks.

ftx us, a rival of Coinbase, bought the derivative platform Ledgerx last year. Outside the United States, the Binance crypto tours enables its customers to trade futures and options for digital assets. The function was restricted at the end of last year after the company collided with the British regulatory authority.

The development of a transparent derivative market is a critical turning point for every asset class and we believe that this will enable further participation in the crypto economy

Fairx based in Chicago lists futures contracts that map markets such as stock indices and oil. When the support of several brokers and trading companies came onto the market last year, it said that it wanted to offer "easier, easier accessible futures for active private investors". The contracts are cleared by Nodal Clear, which is controlled by the German stock exchange.

"The development of a transparent derivative market is a critical turning point for every investment class and we believe that this will enable further participation in the crypto economy," said Coinbase.

derivative products were the focus of the concerns of the supervisory authorities in relation to some crypto exchanges, since they can quickly expose private investors to high losses. The British financial supervisory authority Financial Conduct Authority banned the sale from derivatives to private investors last year.

The deal with Fairx is expected to be completed in the first quarter and the financial conditions were not announced. Coinbase's shares rose by 1.2 percent on Wednesday.