Crypto exchange Coinbase is reportedly in advanced discussions to acquire Deribit, a leading global platform for cryptocurrency derivatives. The deal could have a major impact on both companies and the broader crypto market.
Coinbase and Deribit Move Toward Acquisition Agreement
According to multiple sources familiar with the matter, Coinbase is nearing an agreement to acquire Deribit, the world’s largest trading platform for Bitcoin and Ether options. The companies have reported the said negotiations to the regulators of Dubai in which Deribit operates as a licensed company.
This would enable Coinbase to enter into the crypto derivatives market, a segment that has experienced significant growth in the past few years.
Established in 2016, Deribit has been actively operating in the sphere of crypto derivatives. Being a derivative exchange, it provides options on Bitcoin and Ether, futures contracts, and spot market. According to the Bloomberg reports it was estimated to be valued in the range of between $4 billion and $5 billion earlier this year. Despite the continuation of the talks between the representatives of Coinbase and Deribit, no information on the outcome of the talks is still known.
Expansion of Coinbase Crypto Derivatives Offerings
Deribit would be a major acquisition in this regard for Coinbase which has been offering mainly spot trading services. The key move towards diversification into the derivatives market can be traced to 2023 when it established a derivatives trading arm in Bermuda.
Nevertheless, the acquisition of Deribit would make Coinbase more formidable in the crypto derivatives market that has recorded massive trading volumes in the recent past.
In 2024, Deribit was made a total trading volume of close to $1.2 trillion, two and a half times that of the previous trading year. This increasing trend raises the awareness of the derivatives product among crypto traders. Options and futures are peculiar to fast and versatile markets such as cryptocurrency because they allow traders to manage risks efficiently.
Regulatory Oversight and Market Reactions
Coinbase and Deribit have informed the relevant Dubai authorities about the deal under discussion. Based in the region, Deribit already has a license, and Coinbase would have to assume the prevailing license agreements. Neither Coinbase nor Deribit has commented on the discussions publicly.
The proposed deal comes at a time wherein the crypto market is being considered for more participation by many investors, whether retail or institutional.
As the US government opens up to the crypto industry with Trump in power, companies in the industry have been more aggressive in their expansion strategies. The actions by the administration of Trump include appointing friendly officials and policies to the crypto industry, which could foster the growth of platforms such as Coinbase and Deribit.
Competion Surges As Kraken Makes New Move
The talks between Coinbase and Deribit are taking place amid a competitive landscape in the crypto exchange market. Coinbase’s rival, Kraken, recently announced that it was acquiring NinjaTrader, a retail futures trading platform, for $1.5 billion.
This acquisition will allow Kraken to offer crypto futures and derivatives in the U.S. for the first time. The deal is seen as a move to compete with Coinbase and other players in the rapidly growing crypto derivatives market.
Kraken’s acquisition of NinjaTrader is part of its plan to expand its derivatives offerings and prepare for an eventual public listing.
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