Deribit: Coinbase Buying World’s Biggest Bitcoin, Ethereum Option Platform
Coinbase is in advanced talks to acquire Deribit, the biggest platform for trading Bitcoin and Ethereum options. Deribit has a key operating license in Dubai, and the deal, which could greatly increase Coinbase’s derivatives footprint.
Bloomberg estimated the deal could be worth $4 billion to $5 billion.
Deribit is licensed to operate in Dubai and has a strong institutional clientele as the biggest platform for trading Bitcoin and Ethereum options.
Bloomberg report highlighted that the companies informed Dubai’s regulators about the talks. Coinbase may be making a calculated move with the possible acquisition as the biggest U.S. cryptocurrency company.
Deribit reportedly hired a financial advisor in January to investigate possible acquisition possibilities. A credible source said that although Kraken had been mentioned as a potential candidate, no talks between the two companies occurred.
Coinbase stated “We have a bold mission to increase economic freedom in the world, and are constantly exploring opportunities around the world to build, buy, partner, and invest to accelerate our roadmap,”
The American-listed exchange declined to confirm any ongoing deal discussions.
It is still unclear if Coinbase and Deribit have reached a definitive agreement although the most recent report indicated that talks are moving forward. This is one of the biggest acquisition discussions in the cryptocurrency industry as the options trading platform was previously estimated to be worth between $4 billion and $5 billion.
Coinbase’s choice to pursue this acquisition deal seems to be a calculated step to enter the Middle Eastern market in light of this. The US and EU’s initial tough stance on cryptocurrency regulations in recent years has contributed to the rise of the United Arab Emirates, Hong Kong, and Singapore as the three unofficial global hubs for blockchain events and resident stakeholders.
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