Coinbase is in advanced talks to acquire the crypto derivatives platform Deribit, according to reports from March 21, which referenced individuals knowledgeable about the situation.
The involved parties have reportedly informed Dubai regulators about these negotiations, given that Deribit holds a license in the region that would be transferred to any acquiring company.
Insiders indicated that the discussions have progressed significantly, although it remains uncertain whether they will culminate in a formal agreement.
Both Coinbase and Deribit opted not to comment on the situation.
Data from Kaiko shows that Deribit currently stands as the largest options exchange for Bitcoin (BTC) and Ethereum (ETH), while Coinbase continues to be the leading crypto trading platform based in the US by trading volume.
Earlier reports estimated Deribit’s valuation to be between $4 billion and $5 billion as of January, while Coinbase’s enterprise value exceeded $43 billion, according to information from Yahoo Finance.
Significantly, these discussions come on the heels of Kraken’s acquisition of NinjaTrader for $1.5 billion.
Strategic growth in derivatives
The derivatives market holds substantial importance in the crypto sector, as traders utilize it to manage risk and amplify their exposure to different assets.
As of the latest updates, BTC’s daily spot trading volume was nearly $3 billion, while its daily derivatives trading volume reached approximately $70 billion per Coinglass data, over 23 times that of the spot volume.
Deribit is a crucial participant in this market, handling nearly $1.2 trillion in trading volume over the previous year across options, futures, and spot markets.
This acquisition would strategically position Coinbase within the crypto derivatives landscape. Despite launching a Bermuda-based derivatives platform in 2023, its primary focus has largely been on spot trading markets, especially in the US.
Favorable regulatory developments
Recently, venture capital partners emphasized at The Tie’s InnovateDenver Conference that the pace of mergers and acquisitions in the crypto space would likely increase in 2025.
The evolving regulatory environment in the US, which has significantly changed since President Donald Trump’s return to office, is fueling this trend.
Key changes include the US Securities and Exchange Commission (SEC) dropping 12 investigations and lawsuits against crypto companies as of March 21, the removal of Tornado Cash from the US sanctions list, initiatives aimed at preventing the debanking of crypto firms, and clarification that proof-of-work mining activities are exempt from securities regulations.
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