(Bloomberg) — Coinbase Global Inc. is in advanced discussions to acquire crypto derivatives exchange Deribit, the world’s largest trading platform for Bitcoin and Ether options, according to people with knowledge of the matter.
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The companies have notified regulators in Dubai about the discussions as Deribit holds a license there, which would be taken over by any acquirer, some of the people said. Coinbase is the biggest US-based crypto exchange, according to data platform Kaiko.
It wasn’t clear whether Coinbase has reached any final agreement with Deribit, which Bloomberg reported in January could be valued at around $4 billion to $5 billion, and the talks may not lead to a deal. The people familiar with the situation asked not to be identified discussing confidential negotiations.
Coinbase and Deribit declined to comment.
A deal for Deribit would mark one of the most-significant acquisitions in the industry’s history, and the talks come as Donald Trump’s return to the White House has sparked an initial wave of deal-making. Trump has appointed crypto advocates to key government positions and enacted policies benefiting the industry, such as the creation of a Bitcoin reserve.
Coinbase rival Kraken said earlier this week that it was acquiring retail futures trading platform NinjaTrader for $1.5 billion, a deal that will allow it to offer crypto futures and derivatives in the US for the first time. Kraken is preparing to go public as early as in next year’s first quarter, Bloomberg reported earlier.
An acquisition of Deribit would mark Coinbase’s most ambitious push so far into the lucrative crypto derivatives market. Options are popular in the highly volatile asset class since they give traders the right to buy or sell an asset at a predetermined price by a specific time, but don’t require them to execute the trade. This allows investors to effectively hedge their risk in various investments.
Total trading volumes on Deribit, which offers options, futures and spot trading, nearly doubled last year to almost $1.2 trillion, according to the company.
Coinbase offers derivatives outside the US through a Bermuda-based venue that it launched in 2023, but it has historically been more dominant in spot trading. The exchange said last month that revenue more than doubled and profit increased more than forecast in the fourth quarter, as it saw a return of retail investors who stayed on the sidelines during the last market downturn.