Coinbase in Advanced Negotiations to Acquire Deribit
According to a March 21 Bloomberg report, Coinbase is in advanced discussions to purchase Deribit, the world's largest cryptocurrency options trading platform. This potential acquisition comes amid growing popularity of crypto derivatives trading.
Deribit, which dominates Bitcoin and Ethereum options trading, would add to Coinbase's existing derivatives offerings. Coinbase currently focuses primarily on futures contracts, making Deribit's options expertise complementary to their business model.
Both companies have already notified Dubai regulators about their discussions. Since Deribit holds a license in Dubai, any finalized deal would require transferring this license to Coinbase, Bloomberg's unnamed sources stated.
Earlier reports from January suggested Deribit could be valued between $4 billion and $5 billion in a potential Coinbase deal. Deribit's platform offers options, futures, and spot cryptocurrency trading, with total trading volumes reaching approximately $1.2 trillion last year.
This move follows a similar trend in the industry. Just one day earlier, on March 20, competing exchange Kraken announced plans to acquire derivatives trading platform NinjaTrader for around $1.5 billion.
The cryptocurrency derivatives market is experiencing rapid growth in the US. Derivatives allow traders to:
- Purchase or sell assets at future dates, often with leverage
- Hedge against market volatility
- Speculate on price movements without owning the underlying assets
Coinbase reported that derivatives trading volumes increased by roughly 10,950% in 2024. The company currently lists derivatives for 92 different assets on its international exchange and a smaller selection in the US.
Other companies are also expanding their derivatives offerings. Robinhood launched cryptocurrency futures in January, while CME Group reported an average daily trading volume of approximately $10 billion for crypto derivatives in Q4 2024—a more than 300% increase year-over-year.
The growth in crypto financial services extends beyond derivatives. Gibraltar-based Xapo Bank recently launched Bitcoin-backed USD loans up to $1 million for pre-approved customers. The service allows long-term Bitcoin holders to access cash without selling their assets, with flexible repayment options ranging from 30 to 365 days.
