A first crypto derivatives product has been launched by Coinbase and focuses on the retail brokerage sector

    On June 27, Coinbase Derivatives Exchange (formerly FairX) will launch its first crypto derivatives product, Nano Bitcoin futures (BIT). BIT, according to Coinbase, will first target several top broker intermediates, including retail brokers EdgeClear, Ironbeam, NinjaTrader, Optimus Futures, Stage 5, and Tradovate, as well as clearing firms ABN AMRO, ADMIS, Advantage Futures, ED&F Man, Ironbeam, and Wedbush.

    Coinbase is awaiting regulatory clearance for a futures commission merchant (FCM) licence. The FCM licence will allow the business to sell clients margin futures contracts directly.

    Coinbase Derivatives Exchange is a CFTC-regulated futures exchange for Designated Contract Markets (DCM). FairX, which debuted its futures exchange platform in May 2021, was bought by Coinbase in early 2022 in order to develop cryptocurrency derivatives products.

    Despite the fact that the product is being launched during a very volatile era in the crypto market, Coinbase stated that the crypto derivatives market is worth $3 trillion globally, citing a Financial Times study.

    The crypto market is currently in a slump as a result of the spectacular failures of Terra’s LUNA, crypto lender Celsius, and crypto firm Three Arrows Capital (3AC). Furthermore, the price of Bitcoin has decreased by around 56% this year, while the price of Ethereum’s native token ether has plunged by almost 70%.

    According to Blockchain.News, the business expected to wind down its Coinbase Pro platform by the end of the year, prompting the development of BIT. The exchange stated that the decision was prompted by its joint effort to redesign how users engage with its platform in order to create a more flexible trading ecosystem.

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