Coinbase Global, Inc. (NASDAQ:COIN) made an announcement on Wednesday, according to which it is acquiring FairX, a CFTC- regulated derivatives exchange, with a transaction expected to close in Q1/22.

According to RBC Capital analysts, the company has a strong balance sheet with $6.4 billion in cash to make acquisitions for diversification, and derivatives in an area that is a logical extension to its business model and has a large addressable market.

The company plans to offer its derivatives products through FairX’s existing partner ecosystem such as TD Ameritrade, E*Trade and Virtu and over time leverage FairX’s infrastructure to offer crypto derivatives to all its US customers.