Coinbase's Deribit buy highlights importance of derivatives
Coinbase has agreed to acquire Deribit, a crypto derivatives platform, for $2.9 billion, marking the largest corporate acquisition in the crypto industry. This deal emphasizes the growing significance of financial derivatives in the competitive landscape of cryptocurrency exchanges, including Coinbase, Kraken, and Robinhood. The acquisition positions Coinbase as the largest crypto derivatives platform globally by open interest. Deribit is recognized as the largest crypto options exchange, holding approximately $30 trillion in open interest. Coinbase's existing global presence in perpetual futures includes about $10 billion in daily trading volume and over 20 listed futures contracts. The acquisition enhances Coinbase's market position, although Deribit does not cater to US-based traders. Futures contracts involve agreements to buy or sell assets at a future date, while options contracts provide rights to buy or sell assets at specified prices.
