Coinbase Global Inc. is reportedly negotiating to acquire Deribit, one of the world’s leading cryptocurrency derivatives exchanges, in a deal that could reshape the crypto trading system.
According to Bloomberg, the companies have informed regulators in Dubai, where Deribit holds a licence, about the ongoing discussions. No final agreement has been reached for now, but a potential acquisition could value Deribit between $4 billion and $5 billion, as Bloomberg reported in January.
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Expanding derivatives market presence
Deribit, founded in 2016 in the Netherlands, dominates the Bitcoin and Ether options market, with total trading volumes reaching nearly $1.2 trillion in 2024. The exchange offers options, futures, and spot trading, making it a major player in the derivatives sector.
The U.S.-based crypto exchange, known primarily for its spot trading platform, has expanded its derivatives offerings, including the launch of international derivatives trading in 2023 through its Bermuda-based entity. Thus, acquiring Deribit will be a strategic push into the company’s highly lucrative derivatives market.
As a result, the crypto derivatives market is witnessing a surge in activity, with competitors making strategic moves. Earlier this week, Kraken, another major U.S. exchange, announced its acquisition of NinjaTrader for $1.5 billion, allowing it to offer crypto futures and derivatives to U.S. customers for the first time.
As interest in the derivatives market grows, securing a dominant position in this sector has become a priority for exchanges and investors. Coinbase’s potential acquisition of Deribit could enhance its ability to compete with platforms like Kraken and CME Group, which reported a 300 percent year-over-year increase in daily crypto derivatives trading volume in early 2024.
While Bloomberg reports that discussions are advanced, the deal is not specific to be finalised.
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Derivatives in cryptocurrency
Derivatives in crypto are financial contracts whose value is derived from the price of an underlying cryptocurrency, such as Bitcoin (BTC) or Ethereum (ETH).
These instruments allow traders to speculate on cryptocurrencies’ future price movements or hedge against potential risks without owning the actual asset.
The most common types of crypto derivatives include futures, options, and perpetual swaps.