Big Tech has trained us to expect consolidation as markets mature. Now crypto is following the same playbook, but with a fascinating twist: Bermuda’s regulatory framework is the secret sauce fueling the deals.
Let’s cut through the noise. While headlines trumpet Coinbase gobbling up Deribit and Anchorage snagging Mountain Protocol, the real story is happening beneath the surface. Smart money isn’t just randomly shopping — it’s strategically planting flags in jurisdictions with adult supervision.
The Coinbase Chess Move
Coinbase buying Deribit isn’t just another acquisition — it’s a calculated power play in the global derivatives market. While Coinbase dominates spot trading, Deribit rules crypto options.
No, Deribit isn’t registered in Bermuda, but this deal is very much a Bermuda story. Why? Because Coinbase Bermuda—yes, that’s a thing—has quietly become the hub for its non-U.S. derivatives action. Since getting licensed under Bermuda’s Digital Asset Business Act (DABA) in 2023, Coinbase has been leaning on the island’s regulatory clarity like a lifeboat in a sea of SEC subpoenas.
This isn’t just about scale—it’s about survival and growth. Institutional investors outside the U.S. want derivatives. They want options. And they want to trade them under a jurisdiction that doesn’t change the rules mid-game. That’s Bermuda. And with Deribit in the mix, Coinbase isn’t just adding a new revenue stream; it’s building a global crypto derivatives war chest.
Here’s the strategic flywheel: Coinbase Bermuda already handles spot and perpetual futures trading for non-U.S. clients. Now they’re adding Deribit’s best-in-class options exchange. Boom—one-stop shop for everything derivatives, minus the regulatory migraine.
The bigger picture? This deal underscores how Bermuda is becoming the Delaware of digital assets. DABA provides a clear, comprehensive framework—something the U.S. still can’t seem to figure out. And for a publicly traded company like Coinbase, regulatory predictability isn’t a “nice to have.” It’s the moat.
Bottom line: Coinbase wants to own the future of crypto derivatives, and it’s doing it by placing smart bets offshore—in places like Bermuda, where innovation isn’t punished, it’s regulated.
Anchorage’s Yield Play
When Anchorage Digital, the first federally chartered U.S. crypto bank, acquired Mountain Protocol, it wasn’t just buying a stablecoin — it was buying regulatory alpha.
Mountain’s USDM is a yield-bearing stablecoin issued under Bermuda’s Digital Asset Business Act (DABA) — something that’s nearly impossible to pull off in the U.S. Without Bermuda’s clear, progressive framework, this kind of product would be a regulatory landmine. With it? It’s legal, compliant, and institutional-grade.
This move gives Anchorage more than just a new product line — it gives them infrastructure in a jurisdiction that actually understands how to support innovation responsibly. It’s a bet that regulatory clarity, not regulatory theater, is the foundation of crypto’s next chapter.
Anchorage didn’t just buy yield. It bought the ability to offer it at scale, legally. In a market paralyzed by enforcement headlines, this is a bold, strategic step forward.
Anchorage is building for institutions. Bermuda is open for business. Everyone else is stuck waiting for permission.
DABA: The Framework That Works
What separates Bermuda from other crypto-friendly jurisdictions? Three things:
- Clear categorization: DABA doesn’t lump all digital assets into one bucket. Its licensing tiers recognize the distinct risks of custody, trading, and issuance.
- Ongoing supervision: Unlike jurisdictions offering rubber-stamp approvals, Bermuda’s Monetary Authority (BMA) maintains active oversight.
- Pragmatic evolution: The BMA doesn’t just enforce rules; it refines them based on market realities.
For acquirers, this means cleaner diligence processes and fewer post-merger surprises. When you’re dropping nine figures on an acquisition, that certainty is gold.
The Coming Wave
We’re witnessing the first ripples of what will become a tsunami of consolidation. As institutions continue flooding into digital assets, they’ll increasingly gravitate toward jurisdictions offering both innovation space and regulatory guardrails.
Bermuda has quietly positioned itself as the jurisdiction where serious players can build. Not a regulatory haven for sketchy operators, but a foundation for companies with institutional ambitions.
For businesses looking to scale through acquisition or position themselves as attractive targets, the message is clear: regulatory strategy isn’t just compliance — it’s competitive advantage. And right now, Bermuda’s DABA framework is offering exactly what the market’s heavyweights need.
The next generation of crypto giants won’t be built in regulatory shadows. They’ll be built on frameworks like DABA that understand the balance between innovation and investor protection. That’s not just good policy — it’s good business.
Ready to leverage Bermuda’s regulatory advantage? Y Partners’ specialized team in Bermuda can fast-track your DABA licensing and position your business at the forefront of compliant digital asset innovation. Click here.
