Following FTX and Crypto.com, U.S. giant Coinbase announces acquisition of derivatives exchange.

The U.S. compliant spot exchange and publicly traded company Coinbase announced on the 13th the acquisition of a derivatives exchange, aiming to introduce regulated derivatives to the market for retail and institutional users through the CFTC-regulated derivatives exchange, FairX. Coinbase also mentioned that they are planning to offer cryptocurrency derivatives to all Coinbase users in the United States over time. Coinbase stated that there is a high demand for these products from investors seeking effective risk management, executing complex trading strategies, and increasing exposure. They believe that the introduction of derivatives will attract more retail and institutional investors.

The U.S. compliant spot exchange and publicly traded company Coinbase announced on the 13th the acquisition of a derivatives exchange. Through the acquisition, Coinbase plans to introduce regulated derivatives to retail and institutional users in the market using the CFTC-regulated derivatives exchange FairX. Coinbase also mentioned that they are planning to offer cryptocurrency derivatives to all Coinbase users in the U.S. over time. Coinbase stated that there is a high demand for these products from investors seeking effective risk management, executing complex trading strategies, and increasing exposure. They believe that the introduction of derivatives will attract more retail and institutional investors.

Compliant cryptocurrency derivatives trading in the U.S. has become a long-term layout for major exchanges. FTX US acquired LedgerX in October last year, and Crypto.com also revealed in December of the same year that they agreed to acquire two derivatives exchanges, Nadex and the Small Exchange. FTX and Crypto.com have derivative businesses on their international platforms, but they are paving the way for the U.S. market through the acquisition of compliant derivative exchanges.

Both Coinbase and FTX.US exchanges have joined the International Swaps and Derivatives Association (ISDA) as members. Currently, the association has about 960 members from around the world. With Coinbase joining the fray, whether it signals a regulatory dawn or adds imagination to the stock market performance, will be developments to look forward to in 2022.