Deribit Migrates 90% of Assets to Coinbase and Ends Daily Merkle Tree Checks
Derivatives exchange Deribit has transferred 90% of user assets to Coinbase Custody while phasing out daily client-facing Merkle tree reserve checks.
Crypto derivatives exchange Deribit has migrated roughly 90% of its customer assets to Coinbase Custody. Concurrently, the platform announced it will discontinue its public daily Merkle tree proof-of-reserves verifications starting September 1.
Instead of on-chain Merkle validations, the exchange plans to rely on formal regulatory filings under Dubai’s Virtual Assets Regulatory Authority (VARA) alongside periodic external audit reports. Deribit argued that third-party institutional custody provides robust asset segregation.
The transition sparked community debate over the trade-off between cryptographic transparency and institutional custodial security, setting a precedent for how regulated offshore derivatives venues handle transparency reporting.
Key takeaways
- Deribit transferred 90% of client funds to Coinbase Custody.
- Platform halts daily Merkle tree proof-of-reserves verification.
- Exchange will rely on VARA compliance filings and formal audit reports.