Coinbase to Move Institutional Derivatives Accounts to Deribit on Sept. 9

Coinbase will transfer the accounts, balances and positions of institutional clients using its overseas derivatives exchange services to Deribit next month.

CryptoSlate reported on Aug. 3 that Coinbase plans to move institutional derivatives accounts to Deribit on Sept. 9. Retail customers using the Coinbase app and website are not part of the transfer.

Trading will be suspended for about 30 minutes on the day of the transfer. All open orders will be canceled. Existing positions will be settled for profit and loss based on Coinbase Exchange reference prices and then re-established on Deribit at the same prices.

Coinbase said the process does not mean positions are actually being closed and that existing contracts will remain unchanged after the transfer. Still, unrealized profit or loss could appear immediately after trading resumes if Coinbase and Deribit use different reference prices.

Institutional clients that do not want the transfer must close all positions and shut their accounts by Aug. 28. Clients who keep their accounts will be deemed to have agreed to the new terms of use and the transfer procedures.

Existing Coinbase application programming interface, or API, keys will not work on Deribit and must be newly issued. Existing margin loans also will not be transferred and must be repaid before the transition.