America’s largest crypto exchange announced it's acquired derivatives exchange FairX and plans to start providing derivatives trading to us customers within the future.
Major U.S. crypto exchange Coinbase, the third largest within the world by 24 hour volume, intends to enter the derivatives trading markets, having acquired the FairX derivatives exchange.
FairX may be a selected Contract Market (DCM) derivatives exchange regulated by the goods Futures trading Commission (CFTC). Despite being comparatively new the market, having launched in could 2021, FairX has secured brokerage partnerships with trade leaders TD Ameritrade and E*Trade, together with 18 others.
Derivatives trading refers to the trading of various exotic products connected to the longer term price of underlying assets, instead of trading the assets themselves.
In a Jan. 13 announcement, Coinbase explained plans to roll out crypto derivatives mercantilism for its customers within the U.S. Coinbase explicit , “We need to form the derivatives market additional approachable for our ample retail customers.”
A later tweet from the exchange same that adding derivatives trading to its suite of products would ultimately profit investors on its platform.
“The creation of a transparent derivatives market will unlock further participation in the crypto economy for retail and institutional investors alike.”
Crypto derivatives account for a profitable $137 billion in 24 hour trading volume over the past day in line with CoinGecko. This puts it way on top of the roughly $55 billion in spot trading volume across crypto exchanges within the same amount.
(Brian Newar, Cointelegraph, 2022)