Coinbase’s agreement to buy a derivit features an increase in the importance of financial derivatives for cryptocurrency exchanges, according to industry executives.
On May 8, Coinbase, the largest US crypto exchange by trading volume, Sumang -according to get a crypto derivatives platform deribit For $ 2.9 billion in the largest corporate acquisition of the crypto industry to date.
The deal reflects the increase in competition with digital assets and brokers – including Coinbase, Kraken and Robinhood – to dominate the Burgeoning Market Derivatives Market.
“Global derivatives trading is a major growth driver for Coinbase,” Spencer Yang, co-founder of fractal Bitcoin, a solution to bitcoin scaling, was told Cointelegraph.
Integration has established Coinbase as the world’s largest platform in the world’s crypto derivatives by open interest, the exchange Says In a blog post expressing the deal.
On a May 8 x PostJeff Park, head of Bitwise’s Alpha’s strategies, said Coinbase’s derival derived “could be the best ‘value’ deal with the crypto I’ve seen,” adding a deal is “a coup for Coinbase.”
In March, US Crypto Exchange Kraken agreed to buy ninjatraderA futures brokerage, for $ 1.5 billion.
Related: Coinbase to obtain trading deribit platform options for $ 2.9B
Expanding Global Footprint
Coinbase already has a global presence in eternal futures, with approximately $ 10 billion in daily trading volume on May 8. It also has a US-based derivatives trading platform that lists more than 20 contracts with futures.
The deribit is the largest crypto choice exchange, with about $ 30 trillion in open interest, according to the blog post.
In this acquisition, Coinbase “has obtained all possible regulated and self-regulated derivatives products,” Yang added.
It also strengthened the presence of Coinbase in the global market, still led by Binance, the world’s largest crypto exchange by volume. The deribit does not serve US -based businessmen, according to its website.
“The deribit is the platform of choice for global entrepreneurs for Bitcoin and Ethereum options,” Yang said.
Futures contracts are standard agreements to buy or sell an underlying owner on a future date, which often uses rent on a bid to enhance returns.
Options are contracts that give the right to buy or sell – “call” or “put,” in the trader parlance – an underlying owner at a certain price.
Magazine: Crypto wants to overthrow banks, now they turn into the stablecoin fight
