Coinbase Inc. is acquiring crypto options exchange Deribit for approximately $2.9 billion in a cash-and-stock deal, marking the company's most significant push yet into the global crypto derivatives market.

What Happened: The acquisition, which includes $700 million in cash and 11 million shares of Coinbase Class A stock, is expected to close by the end of the year, pending regulatory approval and customary closing conditions.

Once finalized, it will make Coinbase the largest crypto derivatives platform by open interest and options volume.

Deribit currently processes over $1 trillion in annual trading volume across non-U.S. markets and has $30 billion in open interest, primarily from institutional and professional traders.

The deal gives Coinbase an immediate foothold in the fast-growing options segment, expanding its existing U.S. futures and global perpetuals business into a more comprehensive derivatives offering.

With this move, Coinbase aims to offer spot, futures, perpetuals, and options trading under a single platform.

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Why It Matters: The firm is betting that crypto options will see growth similar to equity options in the 1990s and that adding Deribit will improve revenue stability and profitability, particularly as options trading tends to remain active in both bullish and bearish markets.

The acquisition also marks a strategic expansion of Coinbase's international presence.

While U.S. customers can already access futures products via Coinbase Financial Markets and Coinbase Derivatives Exchange, the Deribit acquisition bolsters the company’s offerings for advanced traders outside the United States.

Coinbase said Deribit has shown consistent profitability and brings a professional client base that aligns with its long-term growth strategy in institutional trading.

This is the latest in a string of acquisitions by Coinbase aimed at expanding its institutional services, following past purchases like Xapo (custody), Tagomi (prime brokerage), FairX (futures exchange) and One River Digital (asset management).

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