Coinbase, one of the leading cryptocurrency exchanges, has recently announced its acquisition of Deribit, a prominent crypto derivatives platform, in a deal valued at around $2.9 billion. This acquisition, which involves a combination of cash and Coinbase stock, represents the largest acquisition in Coinbase’s history.
Deribit officially confirmed the acquisition on X (formerly Twitter) on May 8, expressing excitement about joining forces with Coinbase to usher in a new era in global crypto derivatives. The collaboration aims to accelerate the foundation laid by Deribit, consolidating spot, futures, perpetuals, and options trading under one trusted brand.
According to the Wall Street Journal, the acquisition deal is in its final stages after months of negotiations. Coinbase’s strategic move to acquire Deribit underscores its commitment to solidifying its presence in the rapidly expanding crypto derivatives market, which accounts for a significant portion of daily global crypto trading volumes. In 2024, Deribit processed approximately $1.2 trillion in total trading volume.
Deribit’s Dubai-based entity holds a full license from the Virtual Assets Regulatory Authority (VARA), acquired in late 2024 following the relocation of its operations from Panama. This license enables Deribit to offer crypto derivatives trading services to institutional and qualified investors. However, the acquisition would necessitate regulatory approval to transfer this license to Coinbase, adding a layer of complexity to the transaction.
Over the past few years, Coinbase has been steadily diversifying into derivatives trading. Following the acquisition of FairX to provide CFTC-regulated futures products in the US, Coinbase International Exchange was launched to facilitate perpetual futures trading beyond the domestic market. The addition of Deribit to its portfolio would expedite Coinbase’s efforts to expand its global derivatives footprint and compete more effectively with offshore counterparts.
Reports from Bloomberg in March indicated that Coinbase’s interest in acquiring Deribit was fueled by the evolving regulatory landscape in the US, which has become more favorable towards cryptocurrencies. With regulatory clarity on the horizon, exchanges specializing in derivatives are capitalizing on the opportunity to enhance their offerings. In a similar vein, competitors like Kraken have also made strategic acquisitions, such as the purchase of futures broker NinjaTrader for $1.5 billion earlier this year.
While Deribit’s CEO, Luuk Strijers, mentioned in January that the exchange was not actively seeking a sale, interest from multiple parties had emerged due to its market-leading position. As of May, sources suggest that the terms of the acquisition have been largely agreed upon, pending final regulatory approvals before the deal can be finalized.
Assuming regulatory clearance, the acquisition of Deribit would furnish Coinbase with a robust derivatives trading platform and access to a licensed offshore exchange catering to sophisticated investors. This move signifies Coinbase’s commitment to bolstering its presence in the derivatives market and enhancing its competitive edge in the evolving crypto landscape.