Coinbase to Acquire Leading Crypto Derivatives Platform Deribit for $2.9 Billion

The largest US-based crypto exchange has entered into an agreement to acquire the biggest digital asset options trading platform.

The statement by Coinbase informed that the overall value of the transaction will be approximately $2.9 billion, comprised of cash and company shares.

The Wall Street-listed company described the move as a “milestone transaction,” as Deribit is the global leader in terms of crypto options, with a current open interest of roughly $30 billion.

According to the statement, this acquisition will highlight Coinbase’s derivatives business, “establishing us as the premier global platform for crypto derivatives.”

It will allow Coinbase to create the “most comprehensive institutional derivatives platform” using Deribit’s infrastructure, which “complements” its existing one. Further, the Brian Armstrong-founded exchange expects the deal to strengthen its market leadership and help it scale to a wider audience, especially of institutional traders.

“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives,” said Deribit CEO Luuk Strijers.

“As the leading crypto options platform, we’ve built a strong, profitable business, and this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand. Together with Coinbase, we’re set to shape the future of the global crypto derivatives market.”

$700 million out of the $2.9 billion total will be paid in cash, while the remaining will be in the form of 11 million shares of Coinbase Class A common stock.

Although the transaction is subject to regulatory approval by US watchdogs, Coinbase’s stock prices soared in pre-market trading by almost 5% to over $200.

This deal can become one of the biggest, if not the biggest, in the cryptocurrency industry, if approved. Recall that Ripple made a substantial move earlier this year by acquiring Hidden Road for $1.2 billion, but its $5 billion offer to take over Circle was reportedly rejected.