In a milestone transaction, Coinbase has entered into an agreement to acquire crypto options exchange Deribit.

Coinbase is acquiring Deribit for approximately $2.9 billion, comprised of $700 million in cash and 11 million shares of Coinbase Class A common stock, subject to customary purchase price adjustments.

This transaction is subject to regulatory approvals and other customary closing conditions and is expected to close by year-end.

Deribit’s robust options platform complements Coinbase’s rapidly growing US futures and international perpetual futures businesses, completing its derivatives offering. This is an important step toward Coinbase’s goal of providing traders access to spot, futures, perpetual futures, and options trading – all in one seamless, capital-efficient platform.

Coinbase expects that Deribit will immediately enhance profitability and add diversity and durability to its trading revenues upon close. Options trading revenues are typically less cyclical than spot trading, as traders utilize options to manage risk during both rising and falling markets. Deribit has a consistent track record of generating positive Adjusted EBITDA which Coinbase believes will grow as a combined entity.

“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.”