In a move that reflects the animal spirits still alive in the crypto industry, leading U.S. spot exchange Coinbase (COIN) is reportedly in advanced talks to acquire global derivatives exchange Deribit, as reported by Bloomberg. The companies have even notified Dubai regulators, where Deribit holds its license, about the ongoing discussions.
Earlier this year, there were rumors circulating that Kraken was also considering an acquisition of Deribit. Bloomberg had estimated that Deribit could be valued between $4 billion to $5 billion, showcasing the significant interest in the derivatives market.
Known primarily for its spot trading business, Coinbase (COIN) would make a strategic move into the lucrative crypto derivatives market with an acquisition of Deribit. In 2024, Deribit saw a trading volume of nearly $1.2 trillion, almost double that of the previous year, highlighting the potential for growth and profitability in this sector.
This news comes on the heels of another major U.S. crypto exchange, Kraken, recently expanding its derivatives business through a $1.5 billion deal to acquire Ninja Trader. These acquisitions signify a trend of consolidation and strategic positioning within the crypto industry as companies seek to capitalize on the growing interest and demand for digital assets.
Overall, the potential acquisition of Deribit by Coinbase underscores the evolving landscape of the crypto market and the increasing importance of derivatives trading. As regulatory barriers continue to ease and market players recognize the opportunities in this space, we can expect to see more developments and partnerships that shape the future of the industry.