Coinbase, the largest publicly traded cryptocurrency exchange, announced that it will be buying derivatives exchange Deribit for $2.9 billion deal to as it expands into the crypto options market, but the deal also means it will have a foothold in the UAE.

Deribit is one of the exchanges that has received a full license in the UAE back in December 2024, allowing it to offer spot and derivatives trading in the UAE under Deribit’s Dubai-based entity, Deribit FZE. It received its license from Dubai’s Virtual Asset Regulatory Authority after it had its conditional license in April 2024.

Coinbase noted that the acquisition would accelerate their Global Derivatives Strategy. They stated, “With Deribit’s strong presence and professional client base, Coinbase is making its most substantial move yet to accelerate our international growth strategy. Our complementary footprint strategically positions Coinbase within the sizable global crypto derivatives markets.”

The cash-and-stock deal will allow Coinbase to offer crypto options to its international clients. Widely used for hedging, options can be a key source of stability as their demand typically holds up during bouts of volatility.

The deal consists of $700 million in cash and 11 million shares of Coinbase’s Class A common stock, the company said, and is subject to regulatory approvals and other customary closing conditions and is expected to close by year-end.

The post also noted that the deal would create the Most Comprehensive Institutional Derivatives Platform given that Deribit is the global leader in crypto options. the blog stated, “Deribit’s robust options platform complements Coinbase’s rapidly growing US futures and international perpetual futures businesses, completing our derivatives offering. This is an important step toward our goal of providing traders access to spot, futures, perpetual futures, and options trading – all in one seamless, capital-efficient platform.”

The acquisition will also make Coinbase the global leader in crypto derivatives by open interest and options volume. Deribit facilitated over $1 trillion in trading volume last year across key markets ex-US, with strong demand from institutional and advanced traders. We believe crypto options are on the cusp of significant expansion, similar to the equity options boom of the 1990s.

Finally Coinbase notes that Deribit will immediately enhance profitability and add diversity and durability to their trading revenues upon close.

“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives,” said Deribit CEO Luuk Strijers. “As the leading crypto options platform, we’ve built a strong, profitable business, and this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand. Together with Coinbase, we’re set to shape the future of the global crypto derivatives market.”