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- 1 The United States crypto exchange firm pushed for buying out FTX Europe.
- 2 Coinbase is bullish on expanding crypto derivative offerings.
A recent report found that Coinbase was in quest of acquiring one of the most profitable and successful subsidiaries of now-bankrupt FTX, “FTX Europe”. The leading crypto exchange was said to be after the European subsidiary of FTX seeking the derivatives offerings’ expansion to Europe.
Fortune reported that Coinbase is eying the derivatives since the spot trading options are losing their charm. Given the past months of the bear market, the spot trading volumes have suffered a great deal. The leading crypto exchange firm was considering adding FTX Europe and bolstering its global business plans to include derivatives offerings.
Coinbase was not alone in looking for the expansion with derivatives. The popularity and increasing trading volume make it a lucrative option for crypto firms to add as offerings. Since the United States became stringent with the regulations in the last several months, crypto exchanges ventured to Asian countries for better opportunities with product offerings.
The European region stands out as a crucial region and a must for an international presence. However, the regulations in the region are no less strict than in the United States. Hence, FTX Europe could pave the way for Coinbase-like crypto firms to enter the region with derivatives offerings.
FTX’s Shining Star Till Bankruptcy Filing
Before FTX’s bankruptcy filing in November last year, the European subsidiary was doing significantly well in the region. The firm was reportedly bringing tens of thousands of users on board for the company. Among other products, FTX Europe was also offering a type of crypto derivatives product called perpetual futures in the region.
FTX Europe had the necessary Cypriot regulatory license for the offering. This was one of the other important reasons why major crypto companies, including Coinbase, were chasing the FTX subsidiary—wanting the gateway license to Europe.
Coinbase could have a competitive advantage after a purchase akin to what FTX had over others. Sam Bankman-Fried’s crypto exchange went on to acquire 2020 founded Digital Asset DA AG in efforts of European expansion. In addition, the Bahamian crypto firm also looked at it as an opportunity to forbid Kraken and Binance like other crypto companies to use the tokenized stock service of DA AG, later renamed FTX Europe.
Though Coinbase showed interest in acquisition twice, once at the time of FTX bankruptcy filing in November 2022 and in early September this year, in a recent development it was found to step back.
Citing a person familiar with the subject, Fortune reported that the crypto exchange Coinbase is not eager to acquire FTX Europe anymore.
Coinbase Considering All the Open Options
Given the regulatory uncertainty in the United States, crypto companies have decided to expand offshore, and Coinbase is prominent among those entities. Many crypto executives ramped up scrutiny and enforcement actions against crypto firms resulting in strangling the growth of innovation and burgeoning asset class.
Coinbase is also considering new regions with clear regulations that will support the company’s operations. It is reportedly looking towards European Union countries like the United Kingdom, Brazil, Singapore, and Canada, among several others.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
