StoneX Financial, a subsidiary of StoneX Group, has announced plans to expand the cryptocurrency offerings available to clients. The company will offer access to the full suite of Coinbase Derivatives Exchange (CDE) contracts cleared by Nodal Clear.
StoneX Financial expands crypto offerings in Coinbase partnership
The partnership between Coinbase, StoneX Group, and Nodal Clear was announced on Thursday. This partnership will offer the clients of StoneX Financial access to the CDE nano Bitcoin futures (BIT) and the nano Ethereum futures (ET) contracts. The BIT has a size of 1/100th of the underlying commodity. On the other hand, ET has a size of 1/10th.
The Managing Director and the Head of Futures Online at StoneX Financial Group, Clayton Passero, commented on the development, saying that the company wanted to give clients access to a vast choice of offerings and access to the financial market to maximize their returns in the sector. StoneX clients would also access a vast portfolio of financial products.
“StoneX is committed to providing our clients with greater choice and access across financial markets to maximize their futures trading needs. 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,” Passero said.
Interest in crypto offerings
The Coinbase exchange closed the acquisition of FairX in January last year. Through this acquisition, Coinbase ventured into the cryptocurrency derivatives market. The platform was later rebranded to Coinbase Derivatives Exchange after the acquisition deal was closed.
Coinbase unveiled BIT contracts through this new platform in mid-2022. The platform targeted retail crypto traders. The nano contracts provide the same benefits as regular futures contracts. However, they have been designed to meet the needs of retail traders.
On the other hand, Nodal Clear, a Derivatives Clearing Organization, offers central counterparty clearing services to the Nodal Exchange and the Coinbase crypto derivatives platform. Nodal Clear also mitigated the credit risks to the market participants after becoming a buyer to each seller and a seller to each buyer.
The CEO of the Coinbase Derivatives Exchange, Boris Ilyevsky, commented on this development saying that the company was pleased to have StoneX providing its futures contracts to traders. Ilyevsky said that the Coinbase derivatives platform would benefit from the massive reach and distribution supporting the quality of liquid futures markets.
The CEO also noted that the retail customers at StoneX would be in a position to trade accessible futures contracts that have been tailored to meet individual risks. The company also planned to have larger contracts available to meet the massive institutional demand. This would further expand its reach and grow its revenue.
StoneX is one of the largest financial service companies globally. The group is affiliated with other top brands, such as City Index and Forex.com. The group ended Q1 2023 with operating revenues of $48.8 million from the forex and contract for differences (CFDs) contracts, representing a 32% decline.