Coinbase Inc. today announced it will acquire Dubai-based Deribit, a leading global cryptocurrency derivatives exchange, in a deal valued at $2.9 billion.

Once sealed, this will become the largest acquisition in the crypto industry to date. It’s expected to close by the end of 2025 pending regulatory approval. According to the announcement, it consists of $700 million in cash and 11 million shares of Coinbase Class A common stock.

Deribit holds a major position in the crypto options trading and derivatives market and traded more than $1 trillion in volume in Bitcoin and other currencies, while currently holding about $30 billion in open interest. “This strategic acquisition significantly advances Coinbase’s derivatives business, establishing us as the premier global platform for crypto derivatives,” Coinbase said in its announcement.

A crypto derivative is a financial contract that derives its value from an underlying cryptocurrency asset like bitcoin or Ethereum. These contracts allow traders to speculate on future price movements, hedge against risk or use leverage to make money.

Coinbase operates the largest cryptocurrency exchange in the United States, providing a platform for users to buy, sell and trade a wide range of digital assets, including bitcoin, Ethereum and numerous other tokens. Coinbase also offers other financial products, such as a crypto-linked debit card and rewards programs designed to broaden user engagement with the digital asset ecosystem.

The acquisition follows initial reports in March that the company was in talks to acquire Deribit for $5 billion.

Through this acquisition, Coinbase will become a major player in the crypto derivatives market and expand its product offerings globally. It will be able to compete on a world stage against offshore crypto exchange giants such as Binance Holdings Ltd. and OKX, especially as demand for crypto financial instruments such as derivatives continues to grow.

Today heralded bitcoin topping $100,000, its second time peaking over the six-figure mark since it first broke that value in December. By midday EDT, the currency traded around $101,400, although still a bit off the all-time high it reached near $109,000 in January.

“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,” said Deribit Chief Executive Luuk Strijers.

Following the acquisition, Deribit is expected to maintain its current operations and brand, but will gain access to Coinbase’s infrastructure and regulatory framework. Coinbase said it planned to integrate Deribit’s technology into its existing services.

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