Coinbase announces acquisition of derivatives exchange FairX

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Coinbase is acquiring FairX, a CFTC-regulated derivatives exchange.

the move on Wednesday, saying:"This is an important step toward Coinbase ultimately making the derivatives market accessible to our millions of customers through an industry-leading, simplified user experience."

"Through this acquisition, we plan to bring regulated crypto derivatives to market, initially through FairX’s existing partner ecosystem," Coinbase said."Over time, we plan to 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.

Per the blog post, the deal"is subject to customary closing conditions and reviews, and is expected to close in Coinbase’s first fiscal quarter."as a designated contract market under the auspices of the CFTC in November 20202. The move is the latest for the U.S. crypto exchange's bid to offer derivatives, coming months after it applied for membership in the National Futures Association, a self-regulatory agency. Records indicate that Coinbase's membership is still pending.

 

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