Major U.S. crypto exchange Coinbase, the third largest in the world by 24 hour volume, intends to enter the derivatives trading markets, having acquired the FairX derivatives exchange.
FairX is a Designated Contract Market (DCM) derivatives exchange regulated by the Commodity Futures Trading Commission (CFTC). Despite being relatively new to the market, having launched in May 2021, FairX has secured brokerage partnerships with industry leaders TD Ameritrade and E*Trade, along with 18 others.
Derivatives trading refers to the trading of various exotic products linked to the future value of underlying assets, rather than trading the assets themselves.
In a Jan. 13 announcement, Coinbase explained plans to roll out crypto derivatives trading for its customers in the U.S. Coinbase stated, “We want to make the derivatives market more