Skip to content

Coinbase launches first cryptocurrency Derivatives Product

Cryptocurrency exchange Coinbase announces the launch of its first crypto derivative. It is smaller than traditional Bitcoin future products and is expected to be purchased by individual investors.

Coinbase, a major US cryptocurrency exchange, announced on the 27th of this month that it will start offering the cryptocurrency derivative product ” Nano Bitcoin futures.”

Coinbase acquired the derivatives exchange FairX earlier this year and was preparing to offer crypto derivative products.

FairX launched a futures exchange platform in May 2021 after regulatory approval at the end of 2020.

Coinbase has rebranded FairX to Coinbase Derivatives Exchange and managed to launch a crypto derivative product about six months after its acquisition, but the timing is tricky.

The recently announced derivative products are smaller in size and require less initial funding than traditional Bitcoin futures, making them available to  institutional and private investors for hedging transactions.

Major banks such as Nomura Trust and Banking, Goldman Sachs, and JP Morgan have already started trading crypto derivative products to protect customers from the risk of decline.