Deribit Relocates 90% of Assets to Coinbase Custody and Modifies Reserve Checks
Crypto derivatives exchange Deribit has transferred most client funds to Coinbase while discontinuing its daily public Merkle tree reserve verifications.
Derivatives exchange Deribit has moved roughly 90% of its client assets to institutional custodian Coinbase. Concurrently, the platform phased out its daily Merkle tree proof-of-reserves checks, shifting verification reliance toward regulatory filings with Dubai's VARA and periodic audited statements.
The strategic transition reflects an institutional pivot toward established third-party custodians to mitigate self-custody operational risks. However, the discontinuation of interactive cryptographic reserve verification has drawn scrutiny from transparency advocates who favor on-chain verification over traditional audits.
Deribit's reliance on regulated custody providers may reassure institutional counterparties requiring tier-one custody standards. Nonetheless, the shift emphasizes an ongoing debate over whether third-party institutional oversight adequately replaces trustless, public on-chain proof-of-reserves.
Key takeaways
- Deribit moved 90% of user assets to Coinbase Custody to enhance institutional safety.
- The exchange replaced daily public Merkle tree checks with regulatory and audit reports.
- The move highlights balancing third-party institutional custody with on-chain transparency.