Coinbase to acquire FairX, a regulated crypto-derivatives platform

The largest U.S. bitcoin exchange Coinbase has agreed to acquire the regulated CFTС crypto-derivatives platform FairX.

.@coinbase 🤝 @thefairxchange

This acquisition marks a key stepping stone on Coinbase’s path to offer crypto derivatives to both retail and @CoinbaseInsto customers.

🧵…

— Coinbase (@coinbase) January 12, 2022

The exchange will be able to offer retail and institutional clients access to regulated crypto-derivative instruments on digital assets. Launched in May 2021, FairX operates as a designated contract market (designated contract market, DCM).

Among its partners are TD Ameritrade, E*Trade, StoneX, PhillipCapital, ABN AMRO, Wedbush, Virtu Financial and others.

The closing of the deal is expected in the first financial quarter. The parties must obtain regulatory approval. The price of the deal was not disclosed. The exchange will gradually integrate FairX into its ecosystem.

In September, Coinbase submitted an application to the NFA for registration as a futures commission merchant (futures commission merchant, FCM). In the longer term, the move would allow the company to obtain a CFTC license.

In August, FTX.US acquired the cryptocurrency derivatives exchange LedgerX, which holds a DCM license.

In December, the Crypto.com crypto-derivatives platform signed a deal to acquire Nadex, a CFTC-regulated crypto-derivatives platform.

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