The largest US bitcoin exchange Coinbase has agreed to acquire a regulated CFTC FairX crypto derivatives platforms.
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 Bitcoin exchange will be able to offer retail and institutional clients access to regulated derivatives of digital assets. Launched in May 2021, FairX holds an authorized derivatives market license (designated contract market, DCM).
Partners include TD Ameritrade, E*Trade, StoneX, PhillipCapital, ABN AMRO, Wedbush, Virtu Financial and others.
The transaction is expected to be finalized in the first financial quarter. The parties must obtain regulatory approval. The value of the deal was not disclosed. The exchange is gradually integrating FairX into its ecosystem.
Recall that in September, Coinbase sent to NFA application for registration as a futures intermediary (futures commission merchant, FCM). In the future, the move will allow the company to obtain a CFTC license.
In August, FTX.US acquired cryptocurrency derivatives exchange LedgerX under a DCM license.
In December, cryptocurrency platform Crypto.com entered into an agreement to purchase CFTC-regulated crypto derivatives platform Nadex.