Deribit Transfers Majority of Client Funds to Coinbase and Ends Daily Proof-of-Reserves

Why Did Deribit Choose Coinbase Over Other Custodians?

Deribit, a leading cryptocurrency derivatives exchange, moved approximately 90% of its client assets to Coinbase custody on September 1, 2026. The same day, the platform discontinued its daily Merkle tree-based proof-of-reserves check that allowed users to independently verify holdings. This change shifts verification reliance to periodic reports from the Virtual Assets Regulatory Authority (VARA) and third-party audits, which are less frequently updated and not directly accessible to the public in real time. The move was confirmed by internal communications and platform notices observed by CryptoSlate.

The decision to transfer assets to Coinbase reflects Deribit’s strategy to enhance security and institutional credibility by leveraging a regulated custodian with established compliance frameworks. However, removing the daily proof-of-reserves mechanism reduces transparency for retail users who previously could validate asset backing on a near-instant basis. While VARA oversight and audited financial statements remain in place, these tools typically operate on monthly or quarterly cycles and do not offer the same immediacy as cryptographic proof systems. Industry analysts note that such trade-offs between custodial safety and user verifiability are becoming more common as exchanges navigate evolving regulatory expectations.

What Does This Mean for User Trust and Market Confidence?

Deribit selected Coinbase due to its regulatory licenses in multiple jurisdictions, including VARA approval in Dubai and registrations with the U. S. Securities and Exchange Commission and Commodity Futures Trading Commission. Coinbase’s infrastructure supports both hot and cold storage solutions with insurance coverage, which aligns with Deribit’s risk management goals for large-volume derivatives trading. The exchange cited operational efficiency and reduced internal custody burden as additional factors in the move, particularly as client assets have grown significantly over the past year. No public tender or comparative audit was disclosed in the announcement.

The removal of daily proof-of-reserves may affect user perception, especially among traders who prioritize self-custody principles and real-time transparency. While institutional clients may view the Coinbase integration as a upgrade in safety, retail users could feel less empowered to monitor their funds independently. Experts suggest that exchanges must balance regulatory compliance with technological transparency to maintain broad market trust. Deribit has not indicated plans to reintroduce a real-time verification tool, though it stated that users can request asset verification through support channels under specific conditions.

Why did Deribit stop its daily proof-of-reserves check? The exchange discontinued the daily Merkle tree verification after moving most assets to Coinbase custody, stating that regulatory reports and audits now fulfill oversight requirements, though these are less frequent and less accessible than the previous cryptographic method.

Frequently Asked Questions

Is client money still safe after the transfer to Coinbase? Deribit asserts that client assets are now held with a regulated, insured custodian, which enhances protection against theft or loss, though users can no longer verify holdings in real time using blockchain-based tools.

Will Deribit bring back a public proof-of-reserves system? As of now, there are no public plans to restore the daily verification feature; the exchange says it remains committed to transparency through regulatory channels and audit disclosures.