In the wake of FTX‘s bankruptcy in November of the previous year, Coinbase, a U.S.-based cryptocurrency exchange, reportedly considered the possibility of acquiring FTX’s European unit, as disclosed by documents cited by Fortune.
These documents indicate that Coinbase contemplated the purchase of FTX Europe as part of its exploration into expanding its cryptocurrency derivatives offerings. However, the discussions did not progress to an advanced stage, as mentioned in the report.
While Coinbase has decided not to pursue the potential deal any further, the exchange has maintained its interest in potential acquisitions within this month, as reported by Fortune.
Cryptocurrency derivatives constitute a significant segment of overall digital currency trading. Analysts at JMP have asserted that Coinbase’s expansion into derivatives can enhance its long-term prospects, given that the derivatives market represents the majority of trading activity.
Before its bankruptcy, FTX Europe had been steadily attracting tens of thousands of users, as reported by Fortune.
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