Coinbase Acquiring Deribit—a Leading Crypto Options and Futures Exchange—for Approximately $2.9 Billion

By: CoinGecko Updated: May 5, 2024

Coinbase is in advanced talks to acquire crypto derivatives exchange Deribit for about $2.9 billion, becoming the biggest takeover in the U.S. firm’s history, the Wall Street Journal reported on Wednesday.

The report adds the deal will be finalized with a mix of cash and Coinbase stock. The two firms are in the final stages of negotiations after months of discussions.

The acquisition will be a major coup for Coinbase as it expands its footprint in the lucrative derivatives market, which forms the bulk of daily digital asset trading volume.

Deribit, known for its strong presence in crypto options and futures, is a prime target for Coinbase’s global expansion plans.

Deribit’s integration into Coinbase’s ecosystem will be a seamless one, given its full license from Dubai’s Virtual Assets Regulatory Authority (VARA).

The exchange, which relocated from Panama in 4Q 2024, is authorized to provide crypto derivatives trading services to institutional and sophisticated investors.

However, transferring the license from Deribit to Coinbase will require regulatory approval, which could delay the finalization of the deal.

Coinbase has been making strides in expanding its derivatives footprint.

Its acquisition of FairX earlier this year facilitated the launch of CFTC-regulated futures products in the U.S. Additionally, Coinbase created its own International Exchange to offer perpetual futures trading outside of the American market.

Despite these efforts, Coinbase’s derivatives volume still lags behind offshore competitors, which is where Deribit comes in.

The reported deal comes at a time of increasing optimism around U.S. crypto regulation.

Coinbase’s move follows a March report by Bloomberg which said the U.S. exchange giant is open to a takeover if the price is right.

Also, industry peer Kraken is buying futures broker NinjaTrader for $1.5 billion.

Earlier this year, Deribit CEO Luuk Strijers said the company wasn’t officially for sale but it had attracted interest from several potential buyers due to its dominant market position.

As of early May, sources say most of the deal terms have been finalized and only regulatory hurdles remain before the closure of the acquisition.

If approved, the deal will not only bring Deribit’s deep derivatives liquidity into Coinbase’s fold but also provide the U.S. firm with a licensed offshore exchange to serve institutional traders, potentially transforming Coinbase’s global trading capabilities.