The announcement sent shockwaves through the crypto derivatives market. Coinbase has just sealed a deal to acquire Deribit, the world’s number one platform for Bitcoin and Ethereum options. The transaction amount? A whopping $2.9 billion, including $700 million in cash and 11 million Coinbase shares. This deal reshapes the industry’s landscape.
Coinbase acquires Deribit for $2.9 billion
With this move, Coinbase goes beyond merely existing in the derivatives space; it now emerges as the frontrunner. Deribit, based in Dubai and established in 2016, accounts for nearly $30 billion in open interest and over $1 trillion in annual volume alone. A cash-generating machine that thrives even in bear markets.
Objective: Dominating crypto derivatives globally
Through this acquisition, Coinbase not only enters the derivatives realm but leads it. Greg Tusar, Coinbase’s VP of Institutional Products, asserts, “This deal positions us as the most complete player in the industry.” The firm can now offer spot, futures, perpetuals, and options all on one platform, with options being the key segment to attract institutional players.
An assertive global move by Coinbase
Coinbase bolsters its international expansion strategy by acquiring Deribit, gaining instant access to a well-established professional clientele outside the U.S. and strengthening its presence in offshore markets. It serves as a direct response to Binance and OKX, which still hold a significant portion of the unregulated derivatives market.
Luuk Strijers, Deribit’s CEO, hails the alliance as one that will “redefine the future of crypto derivatives on a global scale.” Integrating a profitable company with a strong track record of positive EBITDA generation enables Coinbase to diversify its revenue streams, reducing dependence on spot trading and its volatile cycles.
A strategic bet ahead of potential regulation
The transaction, subject to approval, is expected to be finalized by year’s end. It follows a series of targeted acquisitions: Xapo, Tagomi, FairX, and One River. However, this one stands out in scale, marking a significant stance at a critical juncture for the industry’s future.
Coinbase plays a bold card here: seizing global leadership in crypto derivatives before regulators draw defining lines in the sand.
