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US cryptocurrency Exchange Coinbase has agreed to buy Dubai’s Delibit for $2.9 billion in the largest deal in the digital market, in preparation for the industry’s anticipated wave of demand from asset managers and banks.
California-based Coinbase handled DELIBIT’s stake of $700 million last year, with the remaining trading volumes of over 1tn, making it the world’s largest market for cryptocurrency derivatives.
“We are pleased to announce that Coinbase’s institutional product manager, Greg Tusar, Coinbase’s institutional product manager:
Coinbase shares rose nearly 5% to around $206 in early New York trade on Thursday. They have fallen by about 20% since the beginning of the year as Donald Trump’s optimism about the presidency declined.
But Bitcoin prices have risen by more than 40% to nearly $100,000 since Trump was elected in November after the US promised to make “world crypto capital” with light touch regulations.
The enforcement case was then dropped while regulators relaxed rules to allow digital assets to be held on behalf of clients.
This has curbed concerns about the US President’s “liberation day” tariff blitz and encouraged trading this year.
The payment business, Ripple, bought Prime Broker Hidden Road for $1.255 billion, while Abu Dhabi’s MGX agreed to plow $2 billion into Binance, the world’s largest exchange, using the world’s Liberty Financial currency supported by Trump and his family.
Many traders use derivatives to borrow a lot and overcharge their crypto bets in markets that were hit hard three years ago.
The industry struggled in 2022 with a series of high-profile bankruptcies, hacks, and token crashes that erode investor trust, particularly a failed FTX exchange for Sam Bank Man Freedy.
Mark Palmer, a senior equity analyst at the benchmark company, said the agreement will “coinbase) provide an immediate and dominant foothold in the high-growth derivatives space ahead of the expected increase in institutional adoption of digital assets.”
FT previously reported that Deribitt was considering entering the US market due to Trump’s pledge to make the US a leader. Crypto exchanges such as OKX and Nexo have already set up plans to set up US offices.
“As a leading Crypto options platform, we have built a strong and profitable business. This acquisition offers traders more opportunities beyond spot, future, endurance and options, all under one trusted brand, providing more opportunities for traders.”
Transactions requiring regulatory approval are expected to close at the end of the year.
The company will announce first quarter revenues after the market closes.
