O’Melveny Guides Coinbase on Acquisition of FairX
January 13, 2022
FOR IMMEDIATE RELEASE
Deal Designed to Make the Derivatives Market More Approachable for Millions of Retail Customers
SAN FRANCISCO—January 13, 2022—O’Melveny represented Coinbase in its acquisition of FairX, a CFTC-regulated derivatives exchange or Designated Contract Market.
Through this acquisition, Coinbase plans to bring regulated crypto derivatives to market, initially through FairX’s existing partner ecosystem. Over time, Coinbase plans to leverage FairX’s infrastructure to offer crypto derivatives to all Coinbase customers in the US, making the derivatives market more approachable for millions of retail customers.
FairX’s market-leading exchange technology and proven ability to deliver listed futures in a straightforward, easy-to-understand structure, aligns with Coinbase’s commitment to creating a more fair, accessible, efficient, and transparent financial system enabled by crypto. The acquisition is subject to customary closing conditions and reviews, and is expected to close in Coinbase’s first fiscal quarter.
The O’Melveny team advising Coinbase on this transaction was led by Corporate Department Co-Chair C. Brophy Christensen, partners Noah Kornblith and Wenting Yu, with support from counsel Kirk Dungca and associates Kevin Loquaci and James Midkiff.
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Contact:
Christopher Rieck
O’Melveny & Myers LLP
+1 212 326 2218
crieck@omm.com
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Coinbase posted the following announcement on its blog:
Coinbase’s path to creating a robust and regulated crypto derivatives market
Jan 12 ·
• Coinbase is acquiring FairX, a CFTC-regulated derivatives exchange
• The acquisition is a key stepping stone on Coinbase’s path to offer crypto derivatives to retail and institutional customers in the US
• This is an important step toward Coinbase ultimately making the derivatives market accessible to our millions of customers through an industry-leading, simplified user experience
Coinbase is committed to providing our retail and institutional customers with the most trusted and complete suite of trading tools to access the cryptoeconomy. As crypto matures as an asset class and the world’s most sophisticated investors deepen their journey into the cryptoeconomy, a healthy, well-regulated derivatives market will be critical for long-term success.
Today, we’re announcing the acquisition of FairX, a CFTC-regulated derivatives exchange or Designated Contract Market, which represents our next step toward creating the robust and holistic trading environment investors are seeking. Through this acquisition, we plan to bring regulated crypto derivatives to market, initially through FairX’s existing partner ecosystem. Over time, we plan to leverage FairX’s infrastructure to offer crypto derivatives to all Coinbase customers in the US. We want to make the derivatives market more approachable for our millions of retail customers by delivering an easy-to-use user experience that Coinbase is known for.
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.
FairX brings a world-class team with deep expertise across product development, market structure, and compliance to Coinbase. Its market-leading exchange technology and proven ability to deliver listed futures in a straightforward, easy-to-understand structure, aligns with Coinbase’s commitment to creating a more fair, accessible, efficient, and transparent financial system enabled by crypto.
The acquisition is subject to customary closing conditions and reviews, and is expected to close in Coinbase’s first fiscal quarter. FairX will operate normally during this period. We look forward to sharing more updates as they become available.
The Coinbase Blog