Coinbase (NASDAQ:COIN) stock is on the move Thursday after the crypto exchange revealed plans to purchase FairX.
Let’s take a look at everything investors in COIN stock need to know about this deal below!
- First off, FairX is a CFTC-regulated derivatives exchange or Designated Contract Market.
- Coinbase is acquiring it as it moves toward offering regulated crypto derivatives to the market.
- It will start this by using FairX’s own ecosystem.
- However, over time it plans to bring this to Coinbase users in the U.S.
- The company hopes this will bring derivatives to more customers with additional ease of access.
- Coinbase doesn’t reveal how much it’s paying to acquire FairX.
- What it does say is it expects the transaction to close during its first fiscal quarter.
- Until then, FairX will continue to operate as it normally does.
Coinbase includes the following statement in its blog post about the FairX acquisition.
“Deep and liquid derivatives markets are essential to the functioning of traditional capital markets. 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 development of a transparent derivatives market is a critical inflection point for any asset class and we believe it will unlock further participation in the cryptoeconomy for retail and institutional investors alike.”
COIN stock started off Thursday with a surge before dropping below its closing price on Wednesday. Since this, it has climbed back and is now largely unchanged from yesterday’s close.
Investors looking for more stock market news today will want to keep reading!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.