Coinbase is in active negotiations to acquire Deribit, the world's largest crypto options exchange. This potential acquisition could significantly alter Coinbase's stance in the derivatives market.
Negotiations Between Coinbase and Deribit
According to Bloomberg, Coinbase and Deribit have contacted regulators in Dubai, where Deribit is licensed. This license would be transferred to Coinbase if the deal goes through. No final agreement has been signed, and the deal might not materialize. Reports from January valued Deribit at $4 to $5 billion.
Why Does Coinbase Want Deribit?
The acquisition could become one of the largest in crypto history. Coinbase aims to expand its influence in the crypto derivatives segment. Currently, the company operates a Bermuda-based derivatives venue, focusing more on spot trading. Buying Deribit would shift the focus: Deribit's trading volumes doubled last year to $1.2 trillion.
Rise in M&A Activity Following U.S. Events
Following Donald Trump's return to the White House, there has been an increase in mergers and acquisitions activity in the crypto industry. Total M&A rose from $400 million in Q4 2022 to $1.2 billion in Q4 2023. Kraken announced the purchase of NinjaTrader for $1.5 billion, allowing it to offer crypto derivatives in the U.S.
If Coinbase and Deribit reach an agreement, it would be one of the largest crypto deals and significantly strengthen Coinbase’s position in the derivatives market.
