Coinbase to Roll Out Support For Derivative Trading Following FairX Acquisition

By Katelyn James | January 13, 2022

U.S-based crypto exchange heavyweight Coinbase reportedly disclosed its plans of establishing a presence across the derivatives trading markets, via a new acquisition of the FairX derivatives exchange.

Specifically, FairX reportedly functions as a Designated Contract Market (DCM) derivatives exchange, subjecting to regulations from the Commodity Futures Trading Commission (CFTC). 

Regardless of only just set its footprints in the market with the introduction in May last year, FairX has reportedly managed to forge brokerage alliances with industry leaders TD Ameritrade and E*Trade, along with 18 others.

“Derivatives trading” is reportedly a term used to talk about the trading of a variety of exotic products associated with the future value of underlying assets, instead of trading the assets themselves.

Via an announcement made on January 13th, Coinbase reportedly offered its explanation for introducing crypto derivatives trading, catering to its customers in America. 

“We want to make the derivatives market more approachable for our millions of retail customers.”

A subsequent tweet made by the exchange further revealed that via including derivatives trading in the current suite of products, the investors on its platform would be opened up to increased benefits. 

“The creation of a transparent derivatives market will unlock further participation in the crypto economy for retail and institutional investors alike.”

Crypto derivatives reportedly take up a lucrative $137 billion in 24-hour trading volume throughout the past day, per insights generated by CoinGecko, helping it exceed the $55 billion in spot trading volume across crypto exchanges in the same period by a wide margin.

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