Coinbase Explores European Market, Considers Acquisition of FTX Europe

Coinbase explores the European market and considers acquiring FTX Europe to expand its crypto derivatives business. The deal would have allowed Coinbase to tap into the growing popularity of complex investment tools based on Bitcoin and Ethereum.

Posted 2 months ago in Blockchain


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US giant Coinbase is considering expanding into the European market by launching a crypto derivative offering there. Negotiations between Coinbase and FTX Europe, the European branch of the bankrupt FTX exchange, were reported to be in progress. However, the deal did not reach the final stage.

Coinbase planned to offer crypto derivatives in Europe, which are complex investment tools based on the value of Bitcoin or Ethereum. Crypto derivatives have gained significant popularity, with trading volume surpassing spot trading by six times in the second half of 2023, according to Kaigo Research.

The acquisition of FTX Europe would have allowed Coinbase to further expand its crypto derivatives business globally. Other entities interested in FTX Europe, such as Cryptocom, were also in negotiations for the acquisition.

In recent years, Coinbase and Gemini have established exchanges in Asia to tap into local markets. Additionally, Coinbase recently received regulatory approval to offer cryptocurrency futures trading to its U.S.-based clients.

FTX Europe was the only platform offering perpetual futures contracts in Europe until the crash of FTX in November last year. However, with the introduction of new crypto regulatory rules in Europe, FTX Europe's growth slowed. Despite showing interest in purchasing FTX Europe after the crash, Coinbase no longer intends to proceed with the deal. Other potential buyers include major exchange Crypto.com.

Last updated 9/23/2023, 9:27:40 AM

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