Coinbase Acquires Regulated Futures Exchange to Expand Derivatives Offerings

Coinbase is purchasing CFTC-regulated derivatives exchange FairX for an undisclosed amount

article-image

Blockworks exclusive art by Axel Rangel

share
  • Coinbase is expected to acquire FairX this quarter
  • The move shows a growing trend for exchanges to diversify their offerings

Coinbase is buying Commodity and Futures Trading Commission-regulated derivatives exchange FairX for an undisclosed amount, the company announced Wednesday in a blog post.

Coinbase will initially offer derivatives trading through FairX’s existing infrastructure, but plans to eventually “leverage FairX’s infrastructure to offer crypto derivatives to all Coinbase customers in the US,” the post read.

The acquisition is essential to building out Coinbase’s offerings and meeting client demand, the company said.

Coinbase has historically reported trading fees as its main source of revenue, but the exchange has been trying for months to diversify its profit streams. In May 2021, the revamped version of Coinbase Prime, the exchange’s prime brokerage service, was announced. 

Expanding into derivatives trading, which is increasingly becoming more popular than spot trading, by volume, offers another opportunity for revenue diversification.

“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 blog post read. 

The acquisition comes as other cryptocurrency exchanges look to expand into the same market. In August 2021, FTX announced the purchase of futures and options platform LedgerX. 

“It’s only natural to want to engage the largest capital market in the world inside the US with that same product through all of our existing institutional and retail customers who want to trade these products,” FTX.US president Brett Harrison told Blockworks at the time. 

Coinbase’s acquisition is set to close in the first quarter of 2022. Terms of the agreement have not been disclosed.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Bain Capital Crypto and Haun Ventures co-led the round as demand grows for Bitcoin-denominated savings and annuities

by Blockworks /
article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /