Coinbase Global, the largest cryptocurrency exchange in the United States, is reportedly in “advanced negotiations” to acquire Deribit
Coinbase Global (NASDAQ:COIN), the largest cryptocurrency exchange in the United States, is reportedly in “advanced negotiations” to acquire Deribit, a startup specialized in derivatives and based in the Netherlands.
If finalized, this deal could be one of the largest acquisitions in the industry so far, with estimates placing Deribit’s valuation at around $4 billion to $5 billion.
What Happened
Originally founded about a decade ago, Deribit has become a hub for trading cryptocurrency derivatives, specifically options and futures contracts. Options grant traders the right to buy or sell a virtual asset at a set price by a specific date, while futures contracts oblige parties to perform these actions at a future date.
Notably, Deribit handles more Bitcoin (BTC) and Ethereum (ETH) options transactions than any other exchange, and its trading volume in 2024 reached approximately $1.2 trillion, nearly double the previous year.
In contrast, Coinbase, a publicly traded company, offers a broader range of services, allowing users to buy and sell several hundred thousand digital assets through its exchange. The company also provides a digital wallet for asset management and a debit card that rewards users with cryptocurrency. For institutional clients, Coinbase operates a prime brokerage service to facilitate complex trades and offers resources like cryptocurrency loans.
Acquiring Deribit would significantly bolster Coinbase’s capabilities in the derivatives market, especially through its Bermuda-based platform that allows international users to trade crypto derivatives.
This move aligns with Coinbase’s ongoing strategy to expand its product offerings and enhance its competitive position in the rapidly evolving crypto landscape, as reported by Bloomberg.
What’s More
The acquisition discussions have reportedly been disclosed to regulators in Dubai, where Deribit operates with a business license, although sources close to the matter caution that the deal may not be completed.
Earlier this year, Coinbase announced the acquisition of Spindl, a startup focused on blockchain-based advertising, and brought on the team behind Utopia Labs, known for developing services for cryptocurrency payment processing.
This potential acquisition follows the announcement of another major competitor in the crypto exchange space, Kraken, to acquire NinjaTrader LLC, a futures exchange valued at $1.5 billion.
This development highlights the growing trend among cryptocurrency exchanges to consolidate and expand their service offerings in response to intensified competition and the positive changes observed in the US regulatory landscape, particularly with President Donald Trump’s second term in the White House.
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