- Coinbase plans to expand fast in global markets by acquiring top options exchange Deribit.
- The $2.9 billion deal includes cash and shares and may need license approval in Dubai.
- This move adds to Coinbase’s push to lead in crypto futures and compete with other giants.
Coinbase has announced its largest acquisition to date, agreeing to purchase Deribit for $2.9 billion in cash and equity. The landmark deal marks a strategic move into the fast-growing global crypto derivatives market. Coinbase will pay $700 million in cash and issue 11 million shares of its Class A stock. This transaction signals Coinbase’s strongest push yet into derivatives, an area long dominated by offshore competitors.
Expanding Global Reach Through a Licensed Derivatives Platform
Founded in 2016, Deribit is a Dubai-based crypto options exchange with a full license from the Virtual Assets Regulatory Authority. The firm moved its operations from Panama to Dubai in late 2024 to meet regulatory standards. With the license, Deribit can legally offer derivatives trading to institutional and eligible investors.
Coinbase’s Vice President of Institutional Product, Greg Tusar, confirmed that the acquisition would scale the company’s global growth strategy. “With Deribit’s strong presence and professional client base, Coinbase is making its most substantial move yet,” Tusar said. However, the acquisition may still require regulatory approval to transfer Deribit’s VARA license to Coinbase.
Moreover, Deribit CEO Luuk Strijers revealed in January that interest in acquiring the firm had surged due to its dominant market position. Although Deribit was not officially for sale, sources indicated that most deal terms were settled as of May.
Strategic Positioning Amid Institutional Demand
Coinbase has steadily entered the derivatives sector over the past three years. It first acquired FairX, which became Coinbase Derivatives Exchange, to launch regulated futures trading in the U.S. Additionally, it created Coinbase International Exchange to facilitate perpetual futures trading overseas.
This latest deal allows Coinbase to compete more directly with leading offshore exchanges. It also reflects Washington’s more favorable stance toward crypto under the current administration.
Furthermore, rivals like Kraken have made similar strategic investments. Earlier this year, Kraken acquired futures broker NinjaTrader for $1.5 billion to strengthen its own derivatives footprint.
Related: Coinbase Named Exclusive Crypto Partner for Riot Esports
Is Coinbase’s $2.9B Bet a Masterstroke or a Risky Leap?
Crypto derivatives trading volumes are projected to exceed $20 trillion by 2025, showing the market’s potential. Consequently, Coinbase’s $2.9 billion investment, amounting to 20% of its market capitalization, could prove highly lucrative.
However, key risks remain. These include cumbersome regulatory barriers, changing trends in the market, and increasing competitiveness from global exchanges. The deal’s success might depend on the U.S. regulators’ competence to regulate the crypto derivatives environment. Although volatile, the future market is booming and is where Coinbase is positioning itself as a beneficiary of the future growth.
