Coinbase buys FairX to offer US crypto derivatives

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Coinbase will buy the U.S. derivatives platform FairX, which could allow the company to offer crypto derivatives in the United States, CoinDesk reported on Wednesday (January 12th).

This would be a change from the current situation, where only a few exchanges allow U.S. investors to trade bitcoin and ether futures. Products paid for in cash are generally the most popular and available products.

FairX is a designated contract marketplace and is registered with the Commodity Futures Trading Commission. This allows it to offer futures products in the United States.

Additionally, Coinbase is a candidate for the National Futures Association, which is a self-regulatory organization that reviews derivatives platforms in the United States.

Developing a transparent derivatives market is a critical inflection point for any asset class and we believe it will unlock greater participation in the crypto-economy for retail and institutional investors, Coinbase said in a statement. blog post Wednesday.

The report notes that FairX is a fairly new platform, initially deployed in May 2021. It obtained regulatory approvals a few months earlier, at the end of 2020.

The company also maintains relationships with several brokerage houses, including TD Ameritrade, E * Trade, ABN AMRO, Wedbush, Virtu Financial and others who have used FairX’s futures products or provided clearing services, the report says. .

Coinbase users in over 70 countries recently had the opportunity to tap into the competitive yields of Decentralized Funding Loans (DeFi) on their Dai, a feature with no fees, no blockages or setup issues.

Read more: Global Coinbase Users Can Earn Returns with DeFi on Dai

DeFi allows people to borrow, lend and trade without the need for a centralized intermediary. High yields have made loans very popular, and DeFi lending protocols are estimated at $ 51 billion.

Coinbase has worked on creating affordable and transparent DeFi protocols, hoping to create a user-friendly experience while removing network fees.

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