Coinbase Global Inc. is buying futures exchange FairX in its most significant step toward expanding into crypto derivatives.
FairX is already registered with U.S. regulators. The company could give Coinbase the edge it requires in getting a derivatives marketplace up and running. Terms of the agreement were not provided. FairX was launched in 2021 and operates under the name of LMX Labs. The trading company sells futures products and is regulated by the United States Commodity Futures Trading Commission (CFTC).
Trading of cryptocurrency derivatives has bloomed rapidly since institutional investors have begun to embrace digital coin trading over the past 18 months, presenting enormous opportunities for platforms that offer options and futures.
According to UK researcher CryptoCompare, crypto derivatives volumes amassed to $3.3 trillion, accounting for almost 55% of the entire crypto market.
Cryptocurrency futures and options products offered by regulated platforms are widely seen safer than buying and selling cash trading. It likely makes them more alluring for institutional investors looking to gain exposure to cryptocurrencies, many of whom are balancing the lure of quick gains with the risks of a nascent industry.
The acquisition is expected to close in the first quarter of the year. Here you can find the list of best bitcoin casinos in 2022 https://www.orlandomagazine.com/best-crypto-casino-sites-and-bitcoin-casinos-in-2022-a-complete-roundup/