StoneX Taps Coinbase for Offering Nano Crypto Contracts

StoneX Financial Inc., a subsidiary of StoneX Group, has expanded its cryptocurrency offerings to clients by providing access to the full suite of Coinbase Derivatives Exchange (CDE) contracts cleared by Nodal Clear.

StoneX Enhances Retail Crypto Offerings

Announced on Thursday, the partnership between the three platforms will provide StoneX Financial clients access to CDE nano Bitcoin futures (BIT) and nano Ethereum futures (ET) contracts. The BIT is sized at 1/100th of the underlying commodity, while the ET is 1/10th.

“StoneX is committed to providing our clients with greater choice and access across financial markets to maximize their futures trading needs,” said Clayton Passero, the Managing Director and Head of Futures Online at StoneX Financial Group. “This agreement enables StoneX clients to access Coinbase’s robust portfolio of products while benefiting from StoneX’s high-value and transparent clearing and execution services.”

Growing Demand in Crypto

Coinbase acquired FairX in January 2022 to enter the regulated crypto derivatives market. The platform was rebranded to Coinbase Derivatives Exchange following the acquisition. Coinbase launched the BIT contracts on the newly acquired platform in mid-2022, targeting retail crypto traders. These nano contracts offer the same benefits as regular futures contracts but are designed for retail traders.

Nodal Clear, a Derivatives Clearing Organization, provides central counterparty clearing services to Nodal Exchange and Coinbase Derivatives Exchange. It reduced the credit risks to the market participants by becoming the buyer to every seller and the seller to every buyer.

“We are excited to have StoneX offer our futures contracts and look forward to their significant reach and distribution contributing to the quality of our already liquid futures markets,” said the CEO of CDE, Boris Ilyevsky. “StoneX’s retail customers will be able to trade accessible futures contracts tailored to their level of risk, and we plan to make larger contracts available to satisfy growing institutional demand.”

Meanwhile, StoneX is a massive financial services company with a presence in a wider market. The group, which is also the owner of Forex.com and City Index, ended the first quarter of the fiscal year 2023 with operating revenue of $48.8 million from forex and contracts for differences (CFDs) contracts, which is a decline of 32 percent.