Coinbase is reportedly in talks to acquire Deribit. If the deal goes through, the lucrative derivatives market could significantly boost the exchange’s market share.
Last year, Deribit posted nearly $1.2 trillion in options, futures, and spot trading. Coinbase has comparatively little derivatives volume, and this merger could supercharge the exchange.
Will Coinbase Acquire Deribit?
Since the SEC dropped its lawsuit against Coinbase, the exchange has been actively expanding its service offerings. Most recently, it launched verified liquidity pools for institutional and retail traders.
According to a new report from Bloomberg, the exchange is currently in talks to acquire Deribit.
Deribit is the world’s largest Bitcoin derivatives exchange. Coinbase first filed to offer these services in 2021, but Coinbase Derivatives hasn’t been a huge share of its trade volume.
However, with a significant pro-crypto regulatory push in the US, the exchange is seemingly looking to expand its offerings and business avenues.
Earlier this month, Coinbase traffic dropped 29%, and a Deribit acquisition may give it huge new revenue streams. Deribit’s total trade volume last year was nearly $1.2 trillion, which could be a huge asset for the exchange.
“Anyone else notice how Coinbase is quietly becoming a crypto empire? They’re about to buy Deribit – one of the biggest crypto derivatives exchanges out there. They’re turning into a global powerhouse. Smart move targeting derivatives – that’s where the real volume is,” Zach Humphries claimed in a social media post.
As of now, there are no details about the deal’s progression or a potential price for the acquisition. In January, Deribit considered an offer to be acquired by Kraken for $5 billion, but the deal fell through. If Coinbase pulls the trigger on it, it could become one of the most important M&As in the industry’s recent history.
Meanwhile, Deribit has faced its own share of challenges recently. Last month, the exchange had to exit one of its biggest markets, Russia, due to EU sanctions. So, a potential acquisition from a publicly listed company could provide a significant boost to Deribit.
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