Coinbase has announced the acquisition of derivatives exchange FairX. The deal marks Coinbase’s next step toward creating the robust and holistic trading environment investors are seeking.

Through this acquisition, Coinbase plans to bring regulated crypto derivatives to market, initially through FairX’s existing partner ecosystem. Over time, Coinbase aims to leverage FairX’s infrastructure to offer crypto derivatives to all Coinbase customers in the US.

Coinbase comments:

“Deep and liquid derivatives markets are essential to the functioning of traditional capital markets. These products are in high demand from investors who seek to effectively manage risk, execute complex trading strategies, and gain exposure to crypto outside of existing spot markets. The development of a transparent derivatives market is a critical inflection point for any asset class and we believe it will unlock further participation in the cryptoeconomy for retail and institutional investors alike”.

FairX brings a world-class team with deep expertise across product development, market structure, and compliance to Coinbase. Its market-leading exchange technology and proven ability to deliver listed futures in a straightforward, easy-to-understand structure, aligns with Coinbase’s commitment to creating a more fair, accessible, efficient, and transparent financial system enabled by crypto.

The acquisition is subject to customary closing conditions and reviews, and is expected to close in Coinbase’s first fiscal quarter. FairX will operate normally during this period.