Deribit Migrates Assets to Coinbase and Halts Daily Reserves Verification
Deribit has transferred 90% of client funds to Coinbase custody while discontinuing its daily Merkle tree proof-of-reserves checks.
Crypto derivatives exchange Deribit has transferred approximately 90% of its client assets to Coinbase Custody. Concurrently, the platform has discontinued its daily client-facing Merkle tree proof-of-reserves verification mechanism.
Going forward, Deribit will rely on regulatory filings from Dubai's Virtual Assets Regulatory Authority and periodic third-party audits. While institutional custody reduces direct exchange custody risks, removing daily cryptographic proof eliminates real-time public transparency for users.
The transition highlights a shifting balance between institutional custodial standards and native on-chain proof-of-reserves practices. Market participants may scrutinize whether institutional oversight adequately replaces trustless, verifiable public solvency proofs.
Key takeaways
- Deribit shifted 90% of customer funds to Coinbase Custody.
- Daily public Merkle tree proof-of-reserves checks were discontinued.
- The platform will rely on VARA compliance filings and standard audits instead.