Coinbase Buys Deribit for $2.9B: Game-Changer for Derivatives?

The purchase of Deribit by Coinbase is being talked about across the crypto derivatives sector.

Deribit, a top exchange for Bitcoin and Ethereum options, with more than a trillion dollars in annual trading, is now being managed under Coinbase’s international brand.

The $700 million cash and 11 million share Coinbase takeover is the biggest crypto takeover in history, trumping Kraken’s $1.5 billion NinjaTrader takeover this year.

With this, Coinbase is venturing into derivatives, enabling it to compete on the same level as Binance in a fast-expanding area.

Institutional traders are moving towards derivatives because they provide them with ways to hedge their risks and can give them more stable returns than trading on the spot.

With the acquisition, Coinbase gets access to Deribit’s international license along with a client base of loyal customers.

Kraken, Ripple, and other industry leaders’ moves have created competition to be the leading derivatives player.

Coinbase’s new trading products—futures, perpetuals, and options—if regulatory-approved, would transform the world crypto economy and set a benchmark for institutions.

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