Coinbase Buys Derivatives Exchange Deribit In Landmark $3 Billion Deal

Coinbase has agreed to buy Deribit, a crypto derivatives exchange, according to a May 8 announcement. Acquiring Deribit — the world’s biggest venue for trading Bitcoin options — would greatly advance Coinbase’s push into the highly profitable crypto derivatives market.Coinbase To Boost Derivatives Business With A $2.9B Deal To Buy DeribitLeading U.S. spot exchange Coinbase is set to carve out a bigger slice of the crypto derivatives market.According to the Wall Street Journal, Coinbase will buy Deribit in a deal valued at a whopping $2.9 billion. The agreement will include a mix of $700 million in cash and 11 million shares of Coinbase Class A common stock. Acquisition Talks have reportedly reached the final stages following months of discussions.“This will make us the most comprehensive player in derivatives,” Coinbase’s vice president of institutional product, Greg Tusar, told the WSJ.Deribit lists options, futures, and spot cryptocurrencies. The platform processed $1.2 trillion in trading volume last year, making it a key player in the crypto options market.Deribit already holds a license in Dubai, which would need to be transferred to Coinbase if the deal is consummated successfully. The license gives the exchange legal standing to provide crypto derivatives trading to institutional and qualified investors.“With Deribit’s strong presence and professional client base, Coinbase is making its most substantial move yet to accelerate our international growth strategy,” Tusar continued.https://twitter.com/coinbase/status/1920465054568218905Until the deal is sealed later this year, pending regulatory approvals, Deribit will continue its business as usual. “Same platform, same team, same commitment to excellence,” the announcement said. However, Deribit co-founders John and Marius Jansen will step away from the options trading platform once the deal is completed.“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives,” Deribit CEO Luuk Strijers postulated, adding:“As the leading crypto options platform, we’ve built a strong, profitable business, and this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options — all under one trusted brand.”Coinbase’s acquisition of Deribit marks a growing trend of large acquisitions in the cryptocurrency market amid a more lenient environment under President Donald Trump. Notably, Trump promised to make America the “undisputed Bitcoin superpower.” On May 1, rival exchange Kraken officially announced it was finalizing the purchase of US derivatives trading platform NinjaTrader to offer futures trading.