Kraken, a leading cryptocurrency asset manager, is continuing negotiations to acquire a majority stake in Deribit, a top crypto options trading platform.

Despite rumors to the contrary, a source close to the matter has confirmed that discussions between Kraken and Deribit are ongoing, indicating that Kraken's interest in the deal is still very much alive.

Deribit has emerged as a significant player in the cryptocurrency options market, operating in over 160 countries and offering derivatives and options trading for digital currencies. The platform's transaction volume soared to $743 billion in 2024, nearly doubling its performance from the previous year, cementing its status as the predominant crypto options exchange.

The exchange has also recently expanded its operations to the United Arab Emirates after obtaining a Virtual Asset Service Provider license from the Virtual Asset Regulatory Authority in Dubai. Furthermore, Deribit has engaged FT Partners to explore potential buyout offers, with its valuation estimated by Bloomberg to be between $4 billion and $5 billion, possibly even higher.

Kraken, known for diversifying its trading offerings, including the listing of various memecoins and the reintroduction of staking services for Ethereum and Bitcoin to U.S. customers, aims to broaden its trading options. Acquiring Deribit could significantly aid in this expansion. However, Luuk Strijers, CCO of Deribit, has refuted claims that the company is actively seeking a complete acquisition.

Coinbase Global (NASDAQ: COIN ) Inc. is another major player reportedly interested in Deribit, adding to the competitive landscape. While no official statements have been made by either Coinbase or Kraken regarding a potential acquisition, the interest from such significant companies underscores Deribit's value within the cryptocurrency market.

The crypto industry has witnessed several major acquisitions as exchanges seek to enhance their services and market presence. Notably, FTX Derivatives attempted to purchase Voyager Digital in 2022 before its downfall, and Binance has also pursued multiple acquisitions, including the purchase of Sim;paul, which granted it a broker-dealer license in the region.

While the financial details of the potential Kraken-Deribit deal remain undisclosed, industry experts suggest that it could represent one of the most substantial mergers and acquisitions trends in the cryptocurrency market.

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