Coinbase’s acquisition of Deribit a threat to competitors

With Coinbase announcing its $2.9 billion acquisition of cryptocurrency options exchange Deribit, CoinDesk cited KeyBanc analysts who said that the deal will make Coinbase the world’s largest cryptocurrency derivatives platform by open interest (OI) and options volume, making it a strong competitor to Binance. Deribit accounts for 95% of the global cryptocurrency options market. Last year, its trading volume was $1.2 trillion. Barclays, a British investment bank and financial services company, also said that the acquisition is expected to expand Coinbase’s presence overseas, helping to bridge a geographic gap. Currently, only 20% of Coinbase’s revenue comes from overseas.