Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Fintech International
Fintechs Face Rising SaaS Security Risks, JPMorgan CISO
Cybersecurity | May 14, 2025
Image: Freepik/DC Studio
Third-party Integration Flaws Are Exposing Fintechs to Spreading Attacks
Patrick Opet, JPMorgan Chase’s Chief Information Security Officer, has dropped a rare public warning that the modern SaaS (Software-as-a-service) model is enabling cyberattacks and embedding systemic risk into the global economy. His message is that the security architecture is breaking down, and software providers are not doing enough to fix it. Below are some urgent quotes from his discourse and why they matter for Canadian fintechs, investors, and regulators.
5 Select Quotes From Opet's Letter
1. “SaaS has become the default... embedding concentration risk into global critical infrastructure.”
Many fintechs are using the same core SaaS vendors for payments, data, and automation, exposing them to a single point of failure. If one of these vendors is compromised, the effects can spread fast like wild fire on a dry summer's night. For fintech startups, the risks may be inherited without full visibility.
See: India Biometric Data Breach Highlights Cybersecurity Risks
2. “Over the past three years, our third-party providers experienced a number of incidents... requiring us to act swiftly and decisively.”
Canadian fintechs with lean security teams need contingency plans for third party supplier compromise and must monitoring vendor behaviour or risk the full wrath of a serious attack that will disrupt operations, result in data theft or leakage, fraud and financial loss, regulatory and legal exposure, reputational damage and even cascading or 'fourth party' risks. Even a global bank must isolate vendors during incidents. Read OSFI's Guidance here: Third-Party Risk Management Guideline.
3. “Fierce competition among software providers has driven prioritization of rapid feature development over robust security.”
Security is often sacrificed for speed. Fintechs should require vendors to provide (1) strong and secure default settings, (2) regular third-party audits, and proof or evidence of strong internal security programs such as SOC 2 Type II or ISO/IEC 27001 certification.
See: Perplexity’s Security Flaws A Red Flag for Industry
4. “Modern integration patterns dismantle essential boundaries... relying on overly simplified interactions between third-party services and firms’ sensitive internal resources.”
OAuth tokens and API integrations are often misused, allowing third and unwanted parties to access internal systems. Without strong segmentation and logging, attackers can move quickly once access is gained. Microsoft Threat Intelligence recently confirmed state actors are now targeting common SaaS apps to infiltrate customers.
5. “The most effective way to begin change is to reject these integration models without better solutions.”
Canadian fintechs should ensure procurement policies require secure integration design, advanced authorization models, and greater transparency from vendors. Startups should reference the Canadian Center for Cybersecurity Top 10 IT Security Actions for implementation guidance.
What This Means for Canadian Fintechs
SaaS brought convenience and speed but also concentrated risk across fintech infrastructure. For smaller Canadian firms who often lack internal security engineering, the consequences of a poorly or unsecured SaaS integration can be severe. This warning should not be ignored.
See: New Cyber Threats Financial Service Firms Need to Know
Fintech leaders should:
- Audit all third-party SaaS integrations especially those with read or write access to sensitive systems. The CSA's Staff Notice 33-321 offers baseline expectations for registrants
- Require vendors to support multi-factor authentication, token expiration, and role-based access controls
- Push for data residency transparency and vendor dependency disclosures, including fourth-party services
- Include security breach notification clauses in service agreements
- Explore secure options such as customer-managed encryption keys, confidential computing, and bring your own cloud models
Final Thought
OSFI and the CSA have made it clear that third party oversight is now a priority, so fintechs can expect questions on cybersecurity controls and operational resilience during regular reviews. SaaS is here to stay but without stronger default security and safer integrations and oversight, it'll remain a growing liability.
See: Can Cloned Voices Crack Bank Security? Need to Know
Fintech startups and scale-ups cannot rely on vendors to lead. Security must be a shared responsibility across the ecosystem, and it begins with better architecture, more transparency, and smarter procurement.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Robinhood Acquires WonderFi for C$250M
Crypto M&A | May 13, 2025
Image from announcement Roinhood to acquire WonderFi
Robinhood Enters Canada Through Regulated Crypto Channels
Robinhood Crypto announced on May 13 that it will acquire Canadian fintech WonderFi Technologies for C$250 million (US$179 million) in an all-cash deal, giving it immediate access to Canada’s regulated crypto trading market.
WonderFi shareholders will receive C$0.36 per share in cash, reflecting a 41% premium to the May 12 closing price and a 71% premium to the 30-day volume weighted average.
See: WonderFi Faces Leadership Challenge in Boardroom Battle
The purchase includes WonderFi’s flagship platforms, Bitbuy and Coinsquare, which combined hold over C$2.1 billion in assets under custody and offer crypto trading, staking, and custody services to millions of Canadian users.
The deal is structured as an arrangement under the BC Business Corporations Act and is expected to close in the second half of 2025, subject to court, regulatory, and shareholder approvals.
Johann Kerbrat, Senior Vice President and GM of Robinhood Crypto:
“WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood’s mission in Canada.”
Ahead of launching or acquiring a crypto trading platform in Canada, Robinhood opened a Toronto headquarters office in 2024 with 140+ staff focused on infrastructure engineering. The WonderFi acquisition allows Robinhood to offer crypto products in a regulated market while positioning for broader retail expansion.
See: Robinhood Acquires AI Platform Pluto Capital Inc
Dean Skurka CEO of WonderFi:
“WonderFi and Robinhood are united in our visions of making crypto accessible and bringing more people into the crypto space.”
Why It Matters
Could Robinhood's acquisition of WonderFi ignite more cross border fintech consolidation in Canada? It will definitely bring more competition to Canadian fintech markets, as the deal injects global capital into the sector, establishing the bar for product, pricing, and platform innovation to crypto, digital banks, wealthtech and lifestyle finance platforms in Canada.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Trump Order Redefines Regulatory Violations
Enforcement | May 12, 2025
Image: AI Freepik
Agencies Must Now Prove Intent Before Pursuing Regulatory Crimes
On May 9, 2025, U.S. President Trump signed an executive order called 'Fighting overcriminalization in federal regulations' that changes how federal agencies can or cannot pursue criminal enforcement for regulatory violations, redefining risk for fintech and crypo leaders. The policy order says prosecutors must now show clear evidence that a person or company intended to break the law before charging them criminally.
See: Celsius Founder Sentenced to 12 Years for Crypto Fraud
This move targets the issue of overcriminalization and aims to reduce legal risk for businesses that unknowingly violate complex or technical rules. It could reshape how enforcement decisions are made in fintech, crypto, and other innovation-driven sectors.
The Executive Order Directs All Federal Agencies
Here's a link the fact sheet published by the White House. Essentially the order mandates all federal agencies to:
- Each federal agency must consult with the Attorney General and compile, publicly post, and maintain annually a list of all enforceable criminal regulatory offences.
- The order discourages criminal enforcement for regulatory offences unless there is clear evidence that the individual or entity knowingly violated the law, causing or risking substantial public harm. Strict liability offences that do not require proof of intent are generally disfavoured.
- If intent cannot be established, agencies are encouraged to pursue civil or administrative remedies instead of criminal prosecution. This aims to prevent individuals and businesses from facing criminal penalties for unintentional regulatory violations.
See: Bank of Canada Warns PSPs Enforcement Coming
- All agencies in consultation with the Attorney General must publish guidance within 45 days of the order, outlining the factors considered when referring violations for criminal enforcement.
- The executive order explicitly states that the new standards do not apply to immigration or national security matters. For all other areas, criminal liability now depends on whether someone knowingly violated a law or rule.
Who Might Benefit from This Policy Change
1. A good example may be former Binance CEO, Changpeng Zhao (CZ) who was sentenced to four months in prison in 2023 for violating the Bank Secrecy Act. The case focused on compliance gaps, not fraud. Similar enforcement actions in the future might be handled differently if there was no evidence of intent.
2. These two former Coinbase employees, Ishan and Nikhil Wahi, were convicted of insider trading using confidential listing information. Since their actions were deliberate, the order may not directly apply to them but it might influence how prosecutors approach future cases involving gray areas in trading conduct.
3. Fintech and crypto companies operating in complex and evolving regulatory environments may benefit the most. The new policy could limit criminal risk for teams that unintentionally violate reporting, registration, or compliance rules.
Examples of Who May Not Benefit
4. Sam Bankman-Fried was convicted in 2023 and sentenced to 25 years in prison. The FTX founder was found guilty of fraud, conspiracy, and misuse of customer funds. Courts found that his actions were intentional and deceptive, so the order likely does not apply in his case.
5. Alex Mashinsky former Celsius CEO pleaded guilty to fraud and market manipulation and recently received a 12 year prison sentence for crypto fraud and knowingly misleading customers. As a result, his case also likely falls outside the scope of the new enforcement policy.
Outlook
The new policy directive places the burden on agencies to prove intent before pursuing criminal charges. The change may protect founders, operators, and teams from facing prison time over technical mistakes or unclear compliance rules in an ever evolving regulatory environment.
See: Investing in the Future of AI and Blockchain
While the order does not affect past convictions, it may influence how courts and prosecutors handle ongoing investigations. It also gives legal teams a new foundation to challenge charges that lack clear evidence of intentional wrongdoing.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Microsoft Blocks DeepSeek App for Employees Only
AI | May 9, 2025
Image: Freepik/iconicbestiary
Microsoft Blocks Employee Use of DeepSeek But Still Offers Its AI Model
On May 8, 2025 during a U.S. Senate testimony on 'Winning the AI Race', Microsoft Vice Chair Brad Smith said the company blocked employees from using the DeepSeek AI app because of the app’s data collection practices, risks of propaganda, and Chinese state censorship. Smith confirmed that DeepSeek “is not available on the Microsoft store” and cannot be used by staff. The full hearing coverage can be found at TechCrunch.
But at the same time Microsoft continues to offer DeepSeek’s open source AI models through its Azure cloud platform, raising questions for both the public and business users alike. According to Dataconomy, Microsoft claims that it has audited, changed, and sandboxed the models before release to remove parts they deem are risky or unsafe.
See: Fintech Leader Insights on DeepSeek’s AI Disruption
This mixed approach has raised some concerns since the AI model can be used by others without Microsoft's internal protections. Some smaller companies may also not have the tools or awareness to even evaluate these risks, whether they be related to security or reputation.
Why This Still Raises Red Flags
It's the same underlying tech. Even if Microsoft tweaks the model, the core code base still comes from DeepSeek, so any unknown, unspottable, or embedded risk could still be present.
The open source models that Microsoft offers via its Azure cloud platform, could have been adversely modified by bad actors for risks like surveillance, disinformation or phishing campaigns.
See: Waymo Plans to Train AI Using In-Car Camera Footage
It's a double standard for Microsoft to say it's unsafe for employees but okay for customers to use it. It sends a mixed message and in certain cases a reputational or regulatory risk could grow for companies that adopt it.
If governments and regulator tighten controls around AI supply chains, especially foreign ones from China, then companies could face compliance, or import/export restrictions in the the future. The State of New York has already banned DeepSeek on official devices earlier this year due to data privacy and censorship concerns.
Why It Matters
Fintechs and financial institutions need to verify AI model origins and audit what is under the hood, and understand how its being deployed while staying aware of compliance risks. Microsoft’s internal controls may reduce risk for its own teams, but the public and smaller firms are left more exposed.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Celsius Founder Sentenced to 12 Years for Crypto Fraud
Enforcement | May 9, 2025
Image: Freepik
Celsius Founder Alex Mashinsky Lied to Customers and Inflated His Company’s Token
Alex Mashinsky, Founder of the crypto lending platform Celsius, has been sentenced to 12 years in prison for defrauding customers and manipulating the price of his company’s digital token.
See: Unveiling the Celsius and 3 Arrows Capital implosions
According to a press release issued May 8, 2025 from the U.S. Department of Justice, Mashinsky promised people their money would be safe and earn high rewards on Celsius. However, courts found that instead he used customer deposits to make risky bets and secretly boost the price CEL, Celsius’s own token. At the company’s peak, Celsius held about $25 billion in customer assets. When Celsius collapsed in July 2022, around 600,000 customers lost access to $4.7 billion worth of crypto. The sentence came from a U.S. court after Mashinsky admitted in December 2024 that he committed fraud and misled investors.
Jay Clatyon, U.S. Attorney said:
“Mashinsky made tens of millions of dollars while his customers lost billions... The rules against fraud still apply.”
As reported by Reuters, Mashinsky also said publicly that he wasn’t selling CEL tokens, but in fact he was and made about $48 million in profit from doing so. Further, he took out $8 million of his own money just before the company blocked customer withdrawals. He told customers that Celsius was financially strong even that he knew it was failing.
See: Celsius Creditors to Return Funds Withdrawn Pre-Bankruptcy
In addition to 12 years prison time, Mashinsky must pay a fine and give up his profits from the token sales.
Conclusion
Crypto companies must follow the same rules as everyone else. Misleading customers and manipulating markets has serious consequences. As more and more people engage with digital assets, trust and transparency is critical for the future of finance.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Consumer Trust and Trends in US Digital Banking
Digital Banking | May 9, 2025
Image: Frequency of Use (Plaid x YouGov Money Talks survey report)
What Drives Digital Banking Choices?
Between August 20-26th 2024, Plaid commissioned a national survey through the YouGov platform to understand how U.S. consumers bank, pay, and invest. The survey reveals insights of consumer preferences in digital finance, including trust in financial providers, app usage, payment methods, credit attitudes, and investment habits, based on weighted responses from 2,077 adults. Fintechs, digital finance platforms, and financial institutions need to stay up to date with the latest retail digital banking trends if they want to compete for consumer loyalty. Read 'Money Talks' (28 page PDF) report explaining these trends. Below we break-down key insights for NCFA's readers. Not yet subscribed? Sign-up for NCFA's weekly newsletter here.
1. How Consumers Feel About Financial Services
Consumers continue to trust traditional banking institutions more than 100% digital platforms:
See: Meridian CEO says Open banking is ‘an opportunity’ for credit unions
- Trust is highest in regional banks and credit unions (67%)
- Followed by community banks (61%)
- Large national or international banks (60%)
- Neobanks are trusted by only (30%) of the responders, however the number of people who trust neobanks is more than double the number who currently use them (13%), an indicator of future growth
- Cryptocurrency exchanges were trusted by only (18%)
Trust and security go hand and hand, and overall, trust comes from perceived care and protection:
- 58% of consumers said that two factor authentication (2FA) is a sign of a trustworthy app
- 47% strong encryption
- 41% if the app receives regular security updates
- Just 5% of the people say social media influencers increase their trust in a financial service. In Canada however, the Ontario Securities Commission recently published a report called 'The Finfluencers Effect on Canadian Retail Investors' that has a different perspective.
See: Retail Banking Platforms and VC Trends 2025
Consumers also shared who they rely on for financial well-being. The takeaway is that fintechs and advisory services must do more to be seen as helpful and caring, a useful partner in people’s financial lives.
- 39% trust their primary bank
- 30% rely on themselves
- 28% cite a partner
- 23% and 17% respectively for financial advisors and accountants
2. How Consumers Use Financial Apps and What They Expect
Online banking is the most widely used financial tool: 99% percent of consumers are familiar with it, and 74% use it weekly.
Other commonly used tools include savings apps (68% weekly or daily), budgeting tools (85%), and peer-to-peer payment apps like Venmo or Zelle (used weekly by 50% of users). Roboadvisors are accessed more than once per week by (80%) of their users but only 1% of all consumers report using them regularly.
See: Canada Post Launches Postal Banking With KOHO
When asked what improvements they want most in financial apps:
- 33% of users said stronger security
- 30% said easier payments
- 29% wanted better customer support
- 25% want advice on credit building
- 23% saving money
60% of respondents said it is important to link their bank account with the financial apps they use.
Takeaway: Apps that are integrated, responsive, and secure are the most likely to be used often. Fintechs and banks that overcomplicate services or create friction in setup risk being overlooked, even if their offerings are advanced.
4. How Consumers Invest and What They Want
25% currently invest in cryptocurrency. Another 21% say they plan to invest in crypto or NFTs in the next year. These responder levels of engagement are equal to the 25% of people who say they will invest in stocks or trading platforms during the same period.
See: Larry Fink’s 2025 Fintech Vision for Capital Markets
Crypto investors are not limiting their exposure:
- 56% hold between 25% and 75% of their total investments in crypto
- 48% said they began investing after seeing friends make money
- 36% have belief in blockchain’s long-term value
- There were more responders that plan to invest in crypto than in bonds or mutual funds
Only 11% of respondents have used AI tools to support their investing decisions -> interestingly, this already exceeds the share of people using roboadvisors, suggesting that AI powered investment tools are gaining traction faster than traditional automated advice products.
Takeaway: Fintechs offering secure, easy to understand crypto access or AI investment tools can appeal to a growing investor base. Banks that avoid crypto are at risk of losing relevance with younger and self-directed investors.
5. Credit and Payment Preferences
Debit cards are now more commonly used than credit by younger adults. According to EY data cited in the report, 69% of Gen Z use debit cards daily or weekly. Many say they avoid credit cards because they do not want debt or do not qualify.
See: VoPay Launches Cross-border Payments-as-a-Service Platform
Buy now pay later (BNPL) services have grown 40% in usage since 2021.
- 42% of users choose BNPL to avoid credit card debt
- Others are drawn by merchant incentives and lower interest rates
- Preferences differ by income group. Those earning under $80,000 tend to avoid new debt, while higher earners are motivated by discounts.
Takeaway: Only 30% of respondents believe their credit score accurately reflects their financial health. 55% said they have been denied a loan due to a low score. These figures support growing interest in alternative data, such as cash flow and account history, for lending decisions.
6. Why Traditional Banks Still Hold Ground
- 82% of consumers still use a traditional bank as their primary institution
- 13% use a digital-only bank
- 45% said they prefer having access to in-person support
- 45% cited security concerns with switching
- 36% said they simply do not trust digital-only banks
Older adults are especially cautious. People aged 66 to 70 are 55% more likely to mistrust digital banks than those aged 22 to 25. Younger adults are more flexible. Among respondents aged 18 to 24, 36% said they would switch banks for a better digital payment experience.
See: Fintech Trends & Predictions Across Generations in 2025
Despite these trends, most people are not actively looking to change banks:
- 74% said they are satisfied with their current provider
- 22% said they would switch for the right reason, especially if the process were simpler
7. How Payment Methods Are Changing
Consumers use different payment methods based on transaction size and age group:
- For purchases over $1,000, 29% use credit cards and 25% use bank transfers. Among people aged 22 to 25, bank transfers are the most used method for large purchases (39%)
- For purchases under $100, digital wallets like Apple Pay are commonly used
- Subscriptions are most often paid with debit (45%) or credit cards (38%)
- Older consumers are more likely to pay using ACH or direct bank transfers
See: Crypto Enters the Core of Canadian Payments
To fund digital wallets:
- 41% of users use debit cards
- 24% use bank payments
- Among consumers over 66 years old, 33% use a bank transfer to fund their wallets
Takeaway: Fintechs that want to increase adoption of pay by bank options must improve the experience. According to the report, 49% of users say they are likely to use pay by bank if the account linking process is easy.
What the Data Means
Consumers want financial services that are clear, secure, and helpful, with trust remaining the most important factor in deciding whether to try a new app, share data, or switch banks. Traditional banks still hold an advantage in trust and reach but must modernize quickly. Fintechs have room to grow if they lead with transparency and value. Financial institutions that support financial goals and offer simple, connected experiences will stay relevant in 2025 (and beyond). Learn more about how consumers in the U.S. use, feel, bank, transact and acquire in 'Money Talks'.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Coinbase Buys Deribit for $2.9B to Lead Crypto Derivatives
M&A | May 8, 2025
Image credit: Coinbase Announcement
Coinbase Buys Deribit for $2.9B to Become Global Crypto Derivatives Leader
On May 8, 2025, Coinbase announced that it has agreed to acquire Deribit in a $2.9 billion deal, to become the world’s largest crypto options exchange. The acquisition includes $700 million in cash and 11 million shares of Coinbase Class A common stock, and is the largest strategic M&A deal to date in the Digital Assets space per Financial Technology Partners who served as the exclusive financial advisor to Deribit to facilitate the transaction which is expected to close by the end of 2025.
Deribit provides institutional-grade infrastructure for trading derivatives across Bitcoin, Ethereum, and other major tokens, and currently holds around $30 billion in open interest and processed more than $1 trillion in trading volume last year in 2024, making it the global leader in Bitcoin and Ethereum options trading.
See: The Agentic Web Begins. Coinbase Launches ‘Base Agent’
With this deal, Coinbase becomes the most comprehensive provider of crypto derivatives globally for hedge funds, asset managers, and proprietary trading firms, offering access to spot, futures, perpetual futures, and options trading on a single platform.
Luuk Strijers, CEO of Deribit:
“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives. As the leading crypto options platform, we’ve built a strong, profitable business, and this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand."
Crypto Derivatives Majority of Global Trading Volume
Derivatives represent about 70% of the global crypto trading volume, including futures, perpetuals, and options. Coinbase already offered futures and perpetuals via its U.S. and international exchanges. Now with the acquisition of Deribit's options infrastructure, it completes Coinbase's platform product stack evolving from basic spot trading to provide access to more advanced strategies and instruments.
See: Coinbase Launches COIN50 Index of Top 50 Cryptos
Greg Tusar, Vice President of Institutional Products at Coinbase:
"With Deribit’s strong presence and professional client base, Coinbase is making its most substantial move yet to accelerate our international growth strategy. Deribit will immediately enhance profitability and add diversity and durability to our trading revenues upon close."
Coinbase's Strategy of Growth by Acquisition
This is not Coinbase’s first major infrastructure acquisition, and at this point it's a pattern of acquiring strategic platforms and integrating them into essential components of its institutional offerings. Each of these deals broadened Coinbase's reach among professional and institutional traders and investors.
See: Circle Files for IPO as Crypto Firms Eye Wall Street
- In 2019, Coinbase acquired Xapo’s custody business, which became Coinbase Custody
- Tagomi followed in 2020, evolving into Coinbase Prime
- FairX was acquired in 2022 and rebranded as Coinbase Derivatives Exchange
- One River Digital became Coinbase Asset Management in 2023
- Deribit acquisition 2025 will turn Coinbase into the global crypto options leader
Why It Matters
Coinbase's acquisition of Deribit is a clear sign of where the industry is heading. The next phase of crypto growth will be built on institutional-grade infrastructure, not hype. Advanced trading tools, capital efficiency, and compliance are becoming the new standards.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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