In a significant move that underscores its ambition to dominate the cryptocurrency derivatives market, Coinbase is setting its sights on gaining market share from the CME Group. Greg Tusar, the head of institutional products at Coinbase, emphasized during a presentation at the Morgan Stanley U.S. Financials Conference that derivatives are pivotal to Coinbase’s future strategy. The focus is not merely on becoming a player in this space but on challenging established entities like CME, which has been a formidable competitor in crypto derivatives.
Coinbase’s efforts in this direction are rooted in two key segments of its institutional business: Markets and Coinbase Prime. In the U.S., retail users can trade futures via the platforms Coinbase Financial Markets and the Coinbase Derivatives Exchange (CDE). Internationally, Coinbase provides services through its International Exchange, which caters to both retail and institutional clients with offerings of spot and perpetual futures.
As part of its aggressive expansion, Coinbase recently announced the acquisition of Deribit, a leading crypto options exchange, for approximately $2.9 billion. This acquisition positions Coinbase to enhance its offerings, particularly for non-U.S. customers, thereby broadening its global footprint. Tusar noted the importance of this acquisition, stating, “Derivatives have been and remain our biggest focus, and winning listed CME Group share is important for us.”
Earlier in June 2025, Coinbase launched 24/7 trading for Bitcoin and Ethereum futures on the CDE, a milestone that marks the first instance of such trading on a CFTC-regulated exchange. This innovation has the potential to reshape the derivatives landscape, appealing to a broad spectrum of traders. Notably, the response has been overwhelming, with over 1.1 million contracts and approximately $580 million in notional volume traded during the extended hours since the launch.
Diving deeper into the offerings, CDE has been catering primarily to retail traders, boasting over 100,000 active users. Tusar mentioned that Coinbase plans to explore larger contracts that can compete more directly with CME’s Bitcoin contracts, raising the stakes for both companies.
For the international market, Coinbase’s Bermuda-based International Exchange has been gaining traction, achieving a market share of 5% to 10%. With over $1 billion in open interest, it has established itself as a viable player in the crypto derivatives arena. The introduction of perpetual-style futures in the U.S. is also on the horizon, with expectations to launch in the second half of this year.
Acquiring Deribit is not just an expansion of product offerings; it also strengthens Coinbase’s position in the derivatives market. With a trading volume surpassing $1 trillion in 2024 and a dominant position as the largest options provider in crypto, Deribit brings significant value to Coinbase’s portfolio. “Options round out our product portfolio nicely as that was a gap for us,” Tusar remarked, pointing out that cross-margining across various products will enhance trading efficiency and set Coinbase apart from competitors.
Coinbase Prime is worth highlighting as it operates similarly to a brokerage, providing multifaceted trading experiences. By integrating custody, trading, and staking through a single platform, Coinbase is carving out a unique niche that differentiates it from traditional trading platforms.
Furthermore, the introduction of Coinbase Crypto-as-a-Service (CaaS) signals the company’s intention to provide foundational infrastructure to emerging firms looking to enter the crypto space. This platform aims to streamline the process for institutions launching their crypto offerings and integrating proprietary technology. Tusar noted, “Whether institutions are launching a crypto brokerage, custodian, or integrating stablecoin payments, Coinbase’s CaaS platform delivers the critical tools.”
In the larger context of the crypto market, the moves by major players like Coinbase indicate a maturation of the sector. As institutional interest accelerates alongside regulatory clarity, the infrastructure underpinning digital asset markets is evolving rapidly. This transformation is underscored by the acquisitions and partnerships that aim to facilitate easier access to trading, increased liquidity, and a more structured approach to dealing with counterparty risks.
The growing competitive landscape also bodes well for Coinbase as it navigates this new phase. Tusar expressed confidence that increased competition, including traditional banks entering the crypto custody space, would ultimately benefit the ecosystem. However, Coinbase is well-positioned to leverage its unique focus on the crypto environment, understanding the nuances of blockchain technology at a foundational level.
Additionally, recent reports predict a continued expansion of product offerings on derivatives exchanges, particularly in options markets. As the crypto market evolves, institutions are increasingly prioritizing accessible liquidity and robust risk management solutions. Coinbase appears to be responding proactively to these emerging trends, ensuring they maintain relevance and appeal to institutional investors.
In conclusion, Coinbase’s strategy to capture a significant share of the crypto derivatives market, particularly from established players like CME, demonstrates its commitment to innovation and growth within the sector. By integrating diverse services, exploring partnerships, and acquiring leading platforms such as Deribit, Coinbase is set on a path that not only solidifies its market position but also contributes to the broader evolution of cryptocurrency trading. The unfolding dynamic will be fascinating to watch as Coinbase pushes the boundaries of what is possible in the crypto derivatives space.
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