Coinbase, Kraken in Talks to Acquire Deribit as Crypto Derivatives Market Heats Up

A major consolidation could be brewing in the cryptocurrency derivatives market as U.S. exchanges Coinbase and Kraken engage in acquisition talks with Deribit, the world’s leading crypto options exchange.

Deribit remains in active discussions with Kraken despite earlier reports suggesting the U.S.-based exchange had walked away from negotiations, according to a Coindesk report on Thursday, citing sources familiar with the matter.

Additionally, rival Coinbase is reportedly interested in acquiring Deribit, conducting due diligence on a potential deal. Bloomberg previously reported that Deribit could be valued between $4 billion and $5 billion, with some estimates suggesting an even higher price tag.

Deribit, founded in 2016 and headquartered in the Netherlands, dominates the cryptocurrency options market, particularly for Bitcoin and Ether contracts. In 2024, the exchange saw its options notional trading volume surge 99% year-over-year to $743 billion, with total trading volume nearing $1.2 trillion. This growth highlights the increasing adoption of options and futures among institutional traders seeking risk management tools and leverage in crypto markets.

Strategic Play for Institutional Market Share

The potential acquisition of Deribit would mark a significant expansion for either Coinbase or Kraken into the crypto derivatives space. Both exchanges have been actively bolstering their institutional offerings, and derivatives represent one of the fastest-growing segments in the industry.

For Kraken, integrating Deribit would enhance its existing futures and perpetual swap offerings, giving it a dominant position in options trading. Meanwhile, for Coinbase, which has been expanding its derivatives division through Coinbase International Exchange, acquiring Deribit would fast-track its ability to compete with global derivatives giants like Binance and Bybit.

Crypto derivatives have increasingly become a focal point for major trading firms and institutional investors. Unlike traditional spot markets, derivatives enable traders to hedge exposure, amplify positions, and speculate with greater capital efficiency. The sustained rise in trading volume within this sector has made Deribit an attractive target for acquisition, particularly as regulatory clarity improves.

Deribit has been working with Financial Technology Partners (FT Partners) to evaluate strategic options. Initially engaged to assist with secondary stock sales for existing investors, FT Partners’ mandate has since expanded to include assessing potential acquisition bids, Bloomberg previously reported.

Despite interest from multiple bidders, Deribit CEO Luuk Strijers has publicly denied that the firm is actively seeking a sale, emphasizing that the exchange remains focused on its long-term vision.