Coinbase Global Inc. has announced the acquisition of One River Digital Asset Management. One River Digital Asset Management is a registered institution digital asset manager with the U.S. Securities and Exchange Commission. The company recently expanded its services.
One River Digital Asset Management was formed in 2013 as a subsidiary to One River Asset Management. Eric Peters will be CEO of Coinbase Asset Management. Coinbase announced that the newly-formed company would be an independent, wholly-owned company.
One River is an advisor and manager of digital assets for financial institutions, banks and other clients. The company has previously worked with Coinbase, utilizing products like Coinbase Prime, an advanced trading platform that manages crypto portfolios. Coinbase stated in a press release that ORDAM and it “share a philosophy grounded in prudent risk-management.”
The acquisition takes place at a moment when the crypto market is in a very volatile state. It has also been shaken up by the bankruptcy of “crypto Winter” as well as the failure of Sam Bankman Fried’s crypto-exchange FTX Trading Limited. The news comes shortly after Coinbase and many other crypto businesses cut ties with crypto-friendly Silvergate Bank, which is having financial trouble.
Coinbase is looking for ways to provide more services than just a cryptocurrency exchange. This has happened due to the decline in retail crypto volume. Base, an open-source Layer 2 blockchain for developers was launched by the company recently to improve access to its own products.
Greg Tusar is the head of Coinbase’s institutional products. He told Bloomberg, “This has to do with wanting more institutional capital in the crypto world.” “We expect to build — on the other side of this crypto winter — an awesome asset-management business.”