Coinbase’s agreement to buy Deribit highlights the increasing importance of financial derivatives for cryptocurrency exchanges, according to industry executives. On May 8, Coinbase, the US’s largest crypto exchange by trading volume, agreed to acquire crypto derivatives platform Deribit for $2.9 billion in the crypto industry’s largest corporate acquisition to date. The deal reflects increasing competition among digital asset exchanges and brokerages — including Coinbase, Kraken and Robinhood — to dominate the burgeoning crypto derivatives market. "Global derivatives trading is a key driver of growth for Coinbase,” Spencer Yang, co-founder of Fractal Bitcoin, a Bitcoin scaling solution, told Cointelegraph.
Source: CoinbaseThe merger established Coinbase as the world’s largest crypto derivatives platform by open interest, the exchange said in a blog post announcing the deal. In a May 8 X post, Jeff Park, Bitwise’s head of alpha strategies, said Coinbase’s Deribit acquisition “might be the best 'value' deal in crypto I've ever seen,” adding the the deal is “a coup for Coinbase.”In March, US crypto exchange Kraken agreed to buy NinjaTrader, a futures brokerage, for $1.5 billion.
It also has a US-based derivatives trading platform listing more than 20 futures contracts. Deribit is the largest crypto options exchange, with about $30 trillion in open interest, according to the blog post. With this acquisition, Coinbase “has captured all possible regulated and self-regulated derivatives products,” Yang added.
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Author / Journalist: Cointelegraph by Alex O’Donnell
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