According to the news of Fourtune, Coinbase, the largest cryptocurrency exchange in the USA, is considering purchasing FTX Europe, the European arm of the stock exchange FTX, which went bankrupt in November 2022.
Coinbase is considering acquiring FTX Europe to expand its crypto derivatives business globally, according to documents reviewed by Fortune.
According to Fortune, Coinbase is considering the acquisition of FTX Europe in order to expand its crypto derivatives business on a global scale.
— Bitcoin Sistemi EN (@btcsistemiEN) September 22, 2023
Coinbase is also exploring acquiring FTX's European presence following the exchange's bankruptcy in November.
Coinbase tasked a European executive of the exchange with exploring the possibility of acquiring FTX Europe, both immediately after FTX's bankruptcy in November 2022 and as recently as September 2023, according to messages viewed by Fortune.
“Although acquisition talks never reached an advanced stage, Coinbase's interest in FTX Europe demonstrates the growing importance of its crypto derivatives business to its global business plan as spot trading volumes plummeted during the bear market.
A report from crypto analysis firm Kaiko Research revealed that derivatives volume was six times larger than spot volume in the second quarter of 2023.”
Fourtune added that until FTX's collapse, FTX Europe was the only firm offering a popular crypto derivative called perpetual futures, or perps, to the European market, thanks to the important regulatory license in Cyprus.
Rumors that Coinbase will acquire FTX Europe have stirred up FTX Token (FTT).
*This is not investment advice.
