Coinbase Tests Options with $5bn Deribit Play
If it goes through, it will be the biggest bet in crypto exchange history.
The US exchange giant is in advanced talks to acquire Deribit — the largest crypto options trading platform — for $4-5 billion, according to Bloomberg. Both companies have already notified Dubai regulators about their discussions, signalling this is no mere market rumour.
Why does this matter? Because derivatives — not spot trading — is where the big money flows in crypto. Deribit processed $1.2 trillion in trading volume last year alone (nearly double its 2023 figures).
Just as Bitcoin struggles to defend its "digital gold" reputation — having shed 22% from its January peak while actual gold hits $3,000 — exchanges are placing billion-dollar bets on crypto's institutional future.
The Great Exchange Game
This acquisition is the culmination of a strategic arms race that's been going on for months.
For Coinbase, traditionally dominant in US spot trading, Deribit brings instant credibility in the options arena — a segment where Deribit reigns supreme and profit margins dwarf simple coin trading.
Coinbase isn’t the first in this play.
Kraken purchased NinjaTrader for $1.5 billion just four days ago. Robinhood acquired Bitstamp last June for a modest $200 million.
Each move targetted a different piece of the puzzle.
Robinhood's Bitstamp acquisition targeted staking and institutional relationships. Kraken's NinjaTrader purchase secured a coveted CFTC-registered license for US futures.
Meanwhile, Coinbase's potential Deribit deal targets options trading — crypto's most profitable playground.
Remember that Coinbase/EY-Parthenon study from January? It showed over 80% of institutional investors planned to boost their crypto holdings in 2025. Exchanges are positioning accordingly — and derivatives are the battlefield where this war will be won.
Trump's Regulatory Tailwinds
The pro-crypto stance of the new administration has created the regulatory breathing room exchanges have craved. The market may be down, but executive confidence appears unshaken.
As Bernstein analysts noted in their investor brief, Coinbase stands particularly well-positioned to capitalise on this new regulatory landscape, potentially securing approvals for advanced trading products like perpetual futures that were previously considered non-starters.
Regulatory Hurdles Remain
Despite the pro-crypto shift in the US, this deal isn't across the finish line yet. Both companies have reportedly informed Dubai regulators of their discussions, indicating the seriousness of negotiations while acknowledging regulatory approval will be needed.
Is this the beginning of a new consolidation wave that reshapes crypto's competitive landscape? If completed, the Deribit acquisition would cement Coinbase's position as the industry's most formidable US player – one whose ambitions clearly extend far beyond US’s borders.