Coinbase Announces Plans to Add Derivatives Offerings
The popular cryptocurrency exchange Coinbase has finally announced their plans to offer crypto derivatives trading for its customers in the United States.
In the blog post, Coinbase states that they will be acquiring FairX, a CFTC-regulated derivatives exchange or Designated Contract Market, which “represents our next step toward creating the robust and holistic trading environment investors are seeking.”
Before being acquired by Coinbase, FairX has already established a name for itself in financial circles. The platform secured brokerage partnerships with TD Ameritrade and E-Trade along with 18 other industry leaders.
Crypto derivatives, the trading of contract based products linked to the future value of an asset as opposed to the trading of the the actual asset itself, accounts for about $137 billion in 24 trading volume according to CoinGecko. This is significantly higher than the $55 billion seen in global spot trading volume in the same time period.
