Coinbase considers acquisition of Deribit – Bitcoin and ETH options in focus

Coinbase Considering Acquisition of Deribit: Bitcoin and ETH Options in Focus

Rumors about Coinbase planning an acquisition of Deribit have been circulating for months. Now, according to a report from The Information, the scenario seems to be solidifying. According to the report, Coinbase is in ongoing talks to take over Deribit entirely. Both sides have so far refrained from providing official statements.

The attraction of Deribit to Coinbase likely lies in the market position of the current industry leader in Bitcoin and Ethereum options. Options, as a special form of futures contracts, provide security for investments and are thus a popular offer for customers seeking ways to hedge against volatility on the crypto markets. Coinbase, the largest U.S. crypto exchange, cannot offer this type of product directly from the U.S. due to regulatory hurdles. Therefore, products in the options sector currently entail collaboration with specialized partners and are handled via the Coinbase International Exchange, launched in May 2023.

Coinbase’s Strategy to Increase Its Offerings

An acquisition of Deribit would allow Coinbase to expand and centralize its service offerings. Deribit is based in Panama and benefits from a more lenient regulatory framework there. With an extensive and established customer base, Deribit represents an attractive acquisition target. Data shows that approximately 90 percent of all Bitcoin options traded globally take place on Deribit, with Ethereum options also being popular.

Deribit, in contrast to other companies in the market, emerged unscathed from the wave of bankruptcies and scandals in the crypto sector over the past few years. The company is recognized for its technological infrastructure and reliable business processes.

Background and Perspectives for Coin

The interest from Coinbase in Deribit can be seen as part of a broader trend. In times of increased scrutiny from authorities such as the U.S. Securities and Exchange Commission (SEC), businesses look for new areas of profitable growth. The ability to offer high-frequency trading of derivatives to professional customers is considered promising by industry insiders.

For Deribit, an acquisition by Coinbase could open new perspectives, particularly in the U.S., where it has so far been limited due to the market dominance of Coinbase and its compliance know-how. Meanwhile, Coinbase could advance its global expansion through such an acquisition and expand its customer base.

Experts are closely watching the potential acquisition and its implications. While no formal announcement of a deal has been made, industry voices speculate about whether Coinbase would adopt Deribit’s product portfolio or focus primarily on the technology and infrastructure benefits.

In the crypto market, competition is fierce, but the industry is unanimously optimistic about growth and prospects. Industry leaders aim to increase their market share despite current regulatory debates, and an acquisition move like this could mark a strategic expansion.