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Coinbase Buys Derivatives Exchange FairX, Describes The Move As A ‘Stepping Stone’ To Offering Crypto Derivatives In US – Converted Organics (COIN)

Coinbase Buys Derivatives Exchange FairX, Describes The Move As A 'Stepping Stone' To Offering Crypto Derivatives In US
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Coinbase Global Inc (NASDAQ:COIN) said on Wednesday it is buying a derivatives exchange regulated by the US Commodity Futures Trading Commission. FairX.

What happened: The trading platform said in a statement that the acquisition “is a key stepping stone on Coinbase’s path to offering crypto derivatives to retail and institutional clients in the United States.”

Deep and liquid derivative markets are essential to the functioning of traditional capital markets. These products are in high demand by investors seeking to effectively manage risk, implement complex trading strategies, and gain exposure to cryptocurrencies outside of the current spot markets.”

No information regarding the purchase price was provided in the Coinbase statement. The exchange said the acquisition is subject to its usual closing conditions and reviews, and the transaction is expected to close in Coinbase’s first fiscal quarter, which ends on March 31.

Coinbase shares rose 3% to $241.75 in after-hours trading on Wednesday. Shares closed the regular session 1.1% lower at $234.70.

See also: How to buy Coinbase shares (COIN)

why does it matter: Coinbase is the second largest cryptocurrency exchange by volume Binance In terms of spot trading.

Coinbase has more than 73 million users worldwide, according to its transparency report dating back to December.

The three largest spot exchanges, according to CoinMarketCap data, recorded a 24-hour trading volume of $45.1 billion.

On the other hand, the three largest derivatives exchanges recorded trading volumes of $77 billion in the same time period.

the Changpeng ZhaoLED Binance is the top derivatives exchange by volume. Over a 24-hour period, Binance recorded a trading volume of $52.62 billion.

In December, Crypto.com purchased North American derivatives exchange Nadex.

read the following: Crypto work is stressful: Coinbase experiments with ‘4 Weeks Recharge’ per year to keep workers productive

Photo: Courtesy of Coinbase

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