Shares of Coinbase were rising in premarket trading on Thursday after crypto trading platform said it would acquire a derivatives exchange FairX.
The acquisition of FairX, which is already registered with the Commodity Futures Trading Commission, fills a void in Coinbase’s product lineup.
In a statement on its blog, Coinbase said that the acquisition will allow it to first bring regulated crypto derivatives to market through FairX’s existing partner ecosystem and then expand to all US Coinbase customers.
“We want to make the derivatives market more accessible to our millions of retail customers by providing the easy-to-use user experience that Coinbase is known for,” the company said.
According to a report by data site CryptoCompare, trading volumes for crypto derivatives reached $2.9 trillion in December, surpassing spot trading. Coinbase has the second largest spot trading volume in cryptocurrencies after Binance, with a 24-hour trading volume of $3.8 billion. CoinMarketCap, Marketwatch reported.
Terms of the acquisition were not disclosed. Coinbase said the acquisition will close in its fiscal first quarter.
Coinbase is up 2.8% to $241.19 in premarket trading.
Write to Joe Woelfel at [email protected]