Coinbase announced its decision to acquire the options platform Deribit for $2.9 billion, a move aimed at significantly enhancing its position in the U.S. crypto derivatives market.

• The agreement consists of $700 million in cash alongside 11 million shares of Coinbase Class A common stock.
• This comes after a lengthy bidding contest with Kraken, which chose to purchase NinjaTrader for $1.5 billion instead.
• Last year, Deribit processed a staggering $1.2 trillion in trading volume, establishing itself as a key player in the crypto options landscape.

Coinbase’s entrance into the crypto derivatives sector is underscored by a recent press release signaling its commitment to partake in this lucrative market.

While both Coinbase and Kraken were in negotiations over Deribit for months, it was reported this exchange could hold a valuation of between $4 billion and $5 billion, according to Bloomberg.

Kraken, on the other hand, opted for several trading opportunities by acquiring NinjaTrader, which will enable it to compete directly with Coinbase regarding futures and derivatives in the U.S.

The acquisition of Deribit arrives at a transformative time for the cryptocurrency industry, as firms are strategically positioning for a future where the U.S. emerges as the “crypto capital of the world,” a vision shared by President Donald Trump.

Benchmark Analyst Mark Palmer explained that this deal provides Coinbase with a robust foothold in the growing derivatives market, especially ahead of anticipated institutional adoption growth.

Founded in 2016, Deribit has swiftly gained market share in digital asset options trading, showcasing a 95% year-over-year increase in trading volume in 2024, according to their internal reports.