What to know:
- Coinbase schedules institutional Deribit migration for September 9 following its $2.9 billion acquisition.
- Coinbase will recreate open derivatives positions on Deribit after settlement during the scheduled migration process.
- Coinbase strengthens its global crypto derivatives business by integrating institutional trading onto Deribit’s platform.
Coinbase will transfer institutional clients from its International Exchange to Deribit on September 9, marking a major step in integrating the world’s largest crypto options exchange following its $2.9 billion acquisition of Deribit. The migration applies only to institutional customers and will not affect retail users of the Coinbase app or website.
The move is part of the exchange’s broader strategy to strengthen its global crypto derivatives business by consolidating institutional trading onto Deribit’s platform, expanding its offshore derivatives offering, and improving liquidity.
Source: Wu Blockchain’s X Post
Also Read: Coinbase AiFi Could Drive Crypto Growth as AI Adoption Accelerates
Coinbase Reveals Key Dates for Deribit Migration
Institutional clients that do not want to migrate must close all positions and permanently close their International Exchange accounts by August 28, Coinbase said.
Accounts left open after that date will automatically be treated as having accepted the new terms and transferred to Deribit.
Coinbase intends to start offering read-only Deribit sub-accounts from August 31. This will enable institutions to check whether they have access, create new API keys, validate portfolio mapping, and get position or withdrawal limits. Coinbase has stated that all dates mentioned are tentative and are subject to change.
Migration Brings Technical and Operational Changes
Coinbase expects that about 30 minutes will be required for the conversion on September 9. All International Exchange order books will be closed, positions will be liquidated, and profits and losses will be settled before any funds are transferred to Deribit. Positions will be rebuilt on Deribit through matched migration trades at the settlement price.
Since the settlement for the two exchanges occurs independently prior to the move, there can be price differentials once trading resumes, leading to unrealized gains or losses from the start.
The movement will not attract trading and settlement costs, according to the exchange, and the transferred positions will be legally binding and not new positions.
There is a need for refreshing the trading system. This is because the existing International Exchange API keys are going to stop working.
This means that there is a need for creating new credentials from the Deribit system. It will be possible to access historical data using the old APIs for about 12 months without having it displayed by Deribit. It will also be necessary to clear any margin loans.
What Comes Next
This change is not only about switching platforms but also about another step in Coinbase’s efforts to connect with Deribit and strengthen its position in the fast-growing institutional crypto derivatives market.
The choice of which entity will be used as the custodian is determined by the client and will depend on the location and account configuration of the client.
The next major step will be the opting out deadline on August 28, followed by read-only Deribit account access starting from August 31.
Provided that all goes according to plan, the whole migration process will happen on September 9, and it will represent one of the biggest integrations performed by Coinbase after the acquisition of Deribit.
Also Read: Coinbase Q2 Revenue Falls 14% as Prediction Markets Revenue More Than Doubles
Be the first to comment