Coinbase reportedly in advanced negotiations to purchase Deribit

According to Bloomberg, Coinbase is in the late stages of talks to buy Deribit, a prominent cryptocurrency derivatives exchange specializing in Bitcoin and Ether options.

Both companies have notified regulators in Dubai, where Deribit is licensed, concerning the ongoing discussions. However, no definitive agreement has been disclosed.

Deribit leads the crypto options market and was valued between $4 billion and $5 billion earlier this year. In 2024, the platform experienced nearly $1.2 trillion in trading volume, almost doubling its activity compared to the previous year.

Coinbase, which is predominantly known for its spot trading business, would considerably fortify its position in the derivatives space with this purchase, aligning with its broader growth strategy.

Kraken's Interest in Deribit

This potential acquisition comes after earlier reports that Kraken had considered making an offer for Deribit. Coinbase has been increasing its focus on expanding its derivatives offerings, having already introduced derivatives trading for U.S. retail users and secured a license to provide crypto futures.

As the derivatives market now comprises a significant portion of cryptocurrency trading volumes, acquiring a platform like Deribit could give Coinbase a robust competitive edge in this sector.

While the negotiations have progressed considerably, Bloomberg reported that it is still uncertain if the two companies will conclude a deal.