Coinbase is acquiring Deribit, the world's largest Bitcoin and Ether options exchange

According to Bloomberg, the companies have reached "advanced talks" in the deal and have notified regulators in Dubai about these discussions

Coinbase is reportedly planning to acquire the world's largest crypto derivatives exchange for Bitcoin and Ether options, Deribit.

According to Bloomberg, the companies have advanced talks and have notified regulators in Dubai about these discussions as Deribit holds a license in the region, which would be transferred to any acquirer.

This report follows up on earlier rumors of Deribit being in discussions with both Kraken and Coinbase for a potential acquisition. Both exchanges have been actively expanding their offerings to institutions, and derivatives are one of the fastest-growing segments.

Last week, Kraken completed the acquisition of NinjaTrader, a US-based retail futures trading platform, for a whopping $1.5 billion.

By gaining access to an established and regulated futures trading platform, Kraken is poised to capitalize on the burgeoning demand for crypto derivatives among both retail and institutional investors in the US.

On the other hand, Coinbase has been expanding its derivatives division through Coinbase International Exchange and Countertops, and Countertops began offering futures contracts earlier this year.

The move to acquire Deribit would further accelerate Coinbase's ability to compete with global derivatives giants like Binance and Bybit.

Deribit specializes in options, which allow traders to buy or sell assets at a predetermined price within a specific timeframe without the obligation to do so, making them ideal for managing volatility.

Last year, Deribit's total trading volume nearly doubled to about $1.2 trillion, highlighting the strong demand for its products.

Coinbase currently offers derivatives trading outside the U.S. through a Bermuda-based venue launched in 2023, but the company is more dominant in the spot trading market.

Bloomberg previously reported that Deribit could be valued between $4 billion and $5 billion, with some suggesting an even higher price tag.

However, as discussions are ongoing, it is unclear whether Coinbase has reached a final agreement with Deribit.

If the deal materializes, it would be one of the most significant acquisitions in the crypto industry’s history.

Deribit has received backing from notable investors such as crypto investment firm XBTO and growth equity investor 10T Holdings.