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Coinbase is successful precocious talks to bargain Deribit, a cryptocurrency derivatives exchange, according to a March 21 study by Bloomberg.
Acquiring Deribit — the world’s largest venue for trading Bitcoin (BTC) and Ether (ETH) options — would bolster Coinbase’s existing derivatives platform, which presently focuses connected futures.
Coinbase and Deribit person reportedly alerted regulators successful Dubai to the woody talks. Deribit holds a licence successful Dubai, which would request to beryllium transferred to Coinbase if a woody goes through, according to Bloomberg, which cited unnamed sources.
In January, Bloomberg reported that a woody with Coinbase could worth Deribit astatine betwixt $4 cardinal and $5 billion.
Deribit lists options, futures and spot cryptocurrencies. Its full trading volumes past twelvemonth were astir $1.2 trillion, Bloomberg said.
On March 20, Kraken, a rival crypto exchange, announced plans to acquire derivatives trading level NinjaTrader for astir $1.5 billion.
Deribit is simply a fashionable crypto derivatives exchange. Source: Deribit
Related: Kraken to get NinjaTrader for $1.5B to connection US crypto futures
Red-hot market
Cryptocurrency derivatives, specified arsenic futures are options, are surging successful popularity successful the US.
Futures are standardized contracts allowing traders to bargain oregon merchantability assets astatine a aboriginal date, often with leverage. Options are contracts granting the close to bargain oregon merchantability — “call” oregon “put,” successful trader parlance — an underlying plus astatine a definite price.
Both types of fiscal derivatives are fashionable among some retail and organization investors for hedging and speculation.
In December, Coinbase said derivatives trading volumes soared astir 10,950% successful 2024, Coinbase said.
Coinbase lists derivatives tied to immoderate 92 antithetic assets connected its planetary speech and a smaller fig successful the US, according to its 2024 yearly report.
In January, Robinhood rolled retired cryptocurrency futures arsenic the fashionable online brokerage redoubled its efforts to vie with Coinbase.
In February, CME Group, the world’s largest derivatives exchange, said it clocked an mean regular trading measurement of astir $10 cardinal for crypto derivatives successful the 4th fourth of 2024 — a much than 300% increase from the twelvemonth prior.
Coinbase launched the US’ archetypal Commodity Futures Trading Commission-regulated Solana (SOL) futures successful February. CME launched its ain SOL futures contracts the pursuing month.
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