Crypto exchange Coinbase has entered a strategic partnership with Kemet, a New York-based crypto infrastructure startup founded by Egyptian entrepreneur Ash Ashmawy. The collaboration aims to streamline how institutional investors access crypto derivatives markets by integrating multiple trading services into a single platform.
Through this arrangement, institutional clients will be able to trade across Coinbase’s key platforms—including Coinbase Exchange, Coinbase Derivatives Exchange, Coinbase International Exchange, and Deribit—via one unified interface. This eliminates the complexity of navigating multiple systems and enhances operational efficiency for large-scale investors.
In addition to the technical integration, Kemet has secured an undisclosed investment from Coinbase Ventures, signaling strong confidence in its infrastructure capabilities and long-term role in institutional crypto trading.
Why Coinbase Chose to Partner Instead of Build
Kemet, founded in 2022, specializes in building advanced trading infrastructure for institutions dealing in crypto derivatives. Its system combines order execution, trade management, and risk monitoring into a single solution—functions that traditionally require separate tools.
According to Ashmawy, most institutional traders rely on multiple disconnected platforms to manage trades, execute orders, and assess risk exposure. Kemet replaces this fragmented approach with a unified system that tracks trades from initiation to execution while providing real-time risk insights.
For Coinbase, partnering with Kemet allows the company to stay focused on its primary role as a regulated exchange operator while leveraging external expertise to meet the sophisticated demands of institutional clients. The move reflects a broader industry trend where exchanges collaborate with specialized providers rather than building every component internally.
Crypto Derivatives Dominate Global Trading Activity
Globally, crypto derivatives have become the dominant segment of digital asset trading. In 2025 alone, the market processed an estimated $85.7 trillion in volume, with daily trading activity averaging over $260 billion. Reports indicate that derivatives account for roughly 82% of all crypto trading on centralized platforms, far surpassing spot trading, which makes up the remaining share.
Major exchanges such as Binance continue to lead the derivatives market, controlling a significant portion of global activity. This dominance has influenced other platforms to expand their derivatives offerings to stay competitive.
Africa’s Growing Crypto Market Faces Structural Barriers
While Africa has witnessed rapid growth in crypto adoption—particularly in countries like Nigeria, South Africa, Kenya, Ethiopia, and Ghana—the continent remains largely focused on spot trading. Data from Chainalysis shows that these markets collectively received over $182 billion in crypto value between mid-2024 and mid-2025, reflecting strong retail participation.
However, institutional derivatives trading is still underdeveloped across the region. Regulatory uncertainty and limited financial infrastructure continue to restrict growth in this segment. As a result, Africa accounts for only a small fraction of global derivatives activity, alongside regions like the Middle East and Latin America.
Kemet itself does not yet serve African institutions, with Ashmawy noting that clearer regulations and more robust market systems are needed before large-scale institutional participation can take hold.
Future Outlook: A Pathway for Institutional Entry
Despite current limitations, the Coinbase–Kemet partnership could eventually open doors for African financial institutions seeking access to global crypto derivatives markets. Coinbase has already established a presence in Africa through stablecoin initiatives and partnerships with fintech firms, positioning itself for broader expansion.
As infrastructure improves and regulatory frameworks evolve, collaborations like this may play a critical role in bridging the gap between Africa’s strong retail adoption and its still-developing institutional crypto ecosystem.
