Coinbase Is in Talks to Acquire Deribit, the Biggest Bitcoin and Ethereum Options Platform

Coinbase is in advanced talks to acquire Deribit, the biggest platform for trading Bitcoin and Ethereum options. Deribit has a key operating license in Dubai, and the deal, which could greatly increase Coinbase's derivatives footprint.

Coinbase (NASDAQ:) is in advanced talks to acquire Deribit, the biggest platform for trading Bitcoin and Ethereum options, according to a report by Bloomberg on Friday, citing sources familiar with the matter.

The report stated that the two companies have informed Dubai’s regulators of the talks, which could greatly increase Coinbase’s derivatives footprint. Deribit has a key operating license in the Gulf state.

The report also noted that the options trading platform was previously estimated to be worth around $4 billion to $5 billion, making it one of the biggest acquisition discussions in the cryptocurrency industry.

Coinbase may be making a calculated move with the possible acquisition as the biggest U.S. cryptocurrency company is known to favor a broad footprint.

Deribit reportedly hired a financial advisor in January to explore possible acquisition possibilities. A credible source said that although Kraken was mentioned as a potential candidate, no talks between the two companies took place.

Coinbase said in a statement: “We have a bold mission to increase economic freedom in the world, and are constantly exploring opportunities around the world to build, buy, partner, and invest to accelerate our roadmap.”

The American-listed exchange declined to comment further or confirm any ongoing deal discussions.

It is still uncertain if Coinbase and Deribit have reached a definitive agreement although the most recent report indicated that talks are progressing.

Earlier reports in January suggested that Deribit was in talks with several potential acquirers and had no plans to conduct an initial public offering (IPO).

Coinbase’s move to enter the Middle Eastern market seems to be a calculated step in light of this. The US and EU’s initial tough stance on cryptocurrency regulations in recent years has contributed to the United Arab Emirates, Hong Kong, and Singapore becoming the three unofficial global hubs for blockchain events and resident stakeholders.