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Coinbase Evaluates Acquisition of FTX Europe

Interest of Coinbase in Acquiring FTX Europe

Despite the turmoil caused by its parent company’s bankruptcy, FTX Europe has managed to maintain a high value, largely due to its license. This license is of such importance that it can only be transferred through an acquisition. Hence, Coinbase is not the only entity that has targeted the European branch of the powerful FTX empire, formerly led by Sam Bankman-Fried. As revealed by Fortune, following the collapse of FTX in late 2022 and even as early as September 2023, Coinbase has shown a strong interest in acquiring the company. Documents from that period indicate that a Coinbase executive based in Europe sought information about the feasibility of such a takeover.

Contrary to these reports, several sources claim that Coinbase has withdrawn from such an offer due to the complexities involved. Furthermore, despite the evident interest of major crypto players in FTX Europe, the administrators of FTX’s assets have cast doubt on the possibility of its sale. In a recent statement, they explicitly expressed reservations about the likelihood of such a transaction.

We are continuously evaluating strategic expansion opportunities for our business and engaging with numerous teams worldwide.


Strategic Maneuvers by Coinbase and the Derivatives Market

Coinbase’s interest in FTX Europe extends beyond acquiring a valuable asset and serves as a testament to its broader strategy of consolidating its position in the derivatives market. This interest has been amplified due to regulatory ambiguity in the United States regarding crypto derivatives trading. To circumvent these uncertainties, Coinbase actively plans to launch an offshore derivatives exchange. Additionally, the company vigorously advocates for more clarity in the US crypto trading landscape.

Coinbase is not (or was not) alone in this pursuit. Previous reports suggest that and FTX FDM, the latter currently under the supervision of Bahamian liquidators, are potential competitors vying for FTX Europe. As the deadline for a proposed sale approaches, extended to September 24 from an initial September 17 date, the narrative is rife with anticipation. Will a giant like Coinbase ultimately claim FTX Europe, or will another player emerge victorious?

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