Deribit Partnership Enables Coinbase to Offer Global Derivatives Access to American Traders
Through its integration with Deribit, Coinbase is broadening availability of crypto options and perpetual futures products for institutional clients in the United States, with plans to extend retail options access before year's end.
The integration of derivatives platform Deribit into Coinbase's offerings has been finalized, establishing a compliant pathway for qualified American customers to participate in global crypto derivatives markets that have traditionally been inaccessible to them.
In an announcement made on Wednesday, the exchange revealed that the integration merges its international derivatives operations with Deribit's platform while simultaneously enabling qualified US customers to tap into that liquidity via Coinbase Financial Markets, the company's derivatives division operating under Commodity Futures Trading Commission (CFTC) regulation. The migration of Coinbase International Exchange balances and positions to Deribit took place on Oct. 1.
According to Coinbase, crypto derivatives represent approximately 80% of worldwide crypto trading volume, yet American traders have historically been without a regulated avenue to access the more liquid options and perpetual futures markets that exist in offshore jurisdictions. A shift in this landscape occurred in May, when the CFTC published guidance that authorized Coinbase Financial Markets to establish connections between US clients and global derivatives trading venues.
The exchange indicated that institutional clients based in the United States will gain the ability to access Deribit's options and perpetual futures products via Coinbase Prime and Coinbase Financial Markets platforms. In the past, these institutional clients generally required offshore corporate structures and independent trading infrastructure to participate in these identical markets.
Access to options trading through Coinbase Prime is anticipated to launch within the coming weeks. The company additionally intends to roll out options products for eligible retail traders outside the United States during this same timeframe, with access for US retail customers to follow later this year.