Coinbase has announced a major move in the crypto space, confirming plans to acquire derivatives exchange Deribit in a $2.9 billion deal. This marks the biggest acquisition in the history of the cryptocurrency industry.

The agreement includes $700 million in cash and 11 million Coinbase shares. With this purchase, Coinbase is aiming to expand its reach into the crypto options and derivatives market—a growing sector in digital finance.

In a statement, Coinbase described the acquisition as “foundational,” saying it would help the company build a world-class, compliant, and easy-to-use derivatives platform. “We’re thrilled to bring Deribit into the Coinbase family as we shape the future of the crypto market,” the company said.

Deribit, known for its crypto options trading services, previously secured a $40 million funding round in 2022 with backing from major investors including QCP Capital and Polybius Capital.

Crypto M&A on the Rise

Coinbase’s deal follows a string of high-value acquisitions in the crypto industry. Just last month, Ripple announced its $1.25 billion acquisition of brokerage firm Hidden Road. Meanwhile, Kraken revealed its $1.5 billion purchase of the retail trading platform NinjaTrader in March.

The crypto market has seen renewed momentum recently, partly driven by the reelection of President Donald Trump, which some believe could lead to looser regulations.

Venture capital is also flowing back into the space. In the first quarter of this year, startups in crypto and blockchain raised $3.8 billion across 220 deals—a 138% increase from the previous quarter. A significant portion of this funding came from a $2 billion investment into Binance by Abu Dhabi-based MGX, the largest single investment in a crypto company to date.

Coinbase’s acquisition of Deribit positions it to take full advantage of this renewed growth and investor interest in crypto derivatives.