This is Why Coinbase is Considering Deribit Acquisition

Coinbase is reportedly in talks to acquire Deribit, but nothing is certain yet. If the deal goes through, it could turn Coinbase into a “crypto empire,” thanks to the lucrative derivatives market.

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 firm.

Will Coinbase Acquire Deribit

Coinbase, one of the world’s largest crypto exchanges, has gone through a few changes recently. Since the SEC dropped its lawsuit against the company, it’s been able to expand its services. According to a new report from Bloomberg, Coinbase is currently in talks to acquire Deribit.

Deribit is the world’s largest crypto derivatives exchange, an industry sector that isn’t Coinbase’s strong suit. The firm first filed to offer these services in 2021, but Coinbase Derivatives hasn’t been a huge share of its trade volume. Granted, it sought approval for new futures contracts in January, but this is not a primary source of revenue.

However, since the crypto market has suffered from lasting doldrums, there may be an opportunity for future growth. Earlier this month, Coinbase traffic dropped 29%, and a Deribit acquisition may give it huge new revenue streams. Bloomberg claimed that Deribit’s total trade volume last year was nearly $1.2 trillion, which could be a huge asset:

“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.

The report had no clear stance on how likely a deal between Coinbase and Deribit might be nor how much it might cost. In January, Deribit considered an offer to get acquired by Kraken for $5 billion, but the deal fell through. If Coinbase pulled the trigger on it, it could become one of the most important business deals in crypto history.

Until we have more information, it’s difficult to make any firm statements about likely outcomes. For example, Deribit was forced out of one of its largest markets last month due to EU sanctions, but a Coinbase acquisition may not change that equation. If a deal does happen, Coinbase will have a real chance to dominate a very lucrative market.