Coinbase looked to acquire FTX Europe despite bankruptcy baggage Coinbase looked to acquire FTX Europe despite bankruptcy baggage
FTX Europe has attracted interest from several firms, including Coinbase, Crypto.com and others.
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Updated: Sep. 23, 2023 at 6:24 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto exchange Coinbase reportedly showed interest in acquiring the European subsidiary of bankrupt FTX, Fortune reported on Sept. 22.
Coinbase reportedly considered acquiring FTX Europe following its collapse last November and continued to explore this possibility even into this month. This interest was part of Coinbase’s strategy to expand its global presence in the crypto derivatives market.
A Coinbase spokesperson told Fortune that the Brian Armstrong-led platform was always looking for “opportunities to strategically expand” its businesses around the globe. The exchange has yet to respond to CryptoSlate’s request for additional commentary.
Meanwhile, other prominent crypto ventures, such as Crypto.com, Trek Labs, and FTX FDM (the Bahamian entity of FTX currently undergoing liquidation proceedings), have also expressed a keen interest in acquiring FTX Europe.
FTX Europe gained a significant advantage by obtaining a coveted derivatives trading license following the grant of a Cypriot regulatory license. The license allowed the firm to be the only one to offer a popular form of crypto derivates called perpetual futures in the European market
This positioned FTX Europe ahead of competitors, particularly those facing regulatory uncertainties in the United States. Earlier this year, Coinbase and Gemini found it necessary to launch international crypto derivatives platforms catering to traders outside the U.S. This underscores the growing importance of derivatives trading for crypto exchanges’ business strategies.
FTX Europe is still for sale as its bankrupt parent company, FTX, reportedly said it was exploring the possibility of the “sale of some or all of the assets of the FTX Europe business.”
It should be noted that FTX Europe is facing legal proceedings from the John Ray III-led parent company, which is trying to recover assets for the estate creditors.
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
John J Ray III is the Chief Restructuring Officer and now-appointed CEO of FTX, a cryptocurrency derivatives exchange.
Brian Armstrong, co-founder and CEO of Coinbase, stands at the forefront of the digital currency revolution.
