Cryptocurrency Exchange Coinbase Global Inc. today announced the acquisition of One River Digital Asset Management, a registered US company for institutional digital asset management, as part of its latest expansion of services.
One River Digital Asset Management is a subsidiary of One River Asset Management, founded by Chief Executive Eric Peters, who will remain CEO of the new company, Coinbase Asset Management. The newly formed company will be an independent, wholly-owned company, Coinbase said.
One River acts as an advisor to banks and other institutions and as a digital asset manager. It has previously worked with Coinbase on products such as Coinbase Prime, the advanced trading platform that allows for the management of crypto portfolios. Coinbase and ORDAM were said to share “an ethos grounded in prudent risk management” in a statement.
This acquisition comes at a time when the crypto markets are experiencing high levels of volatility, and the sector has been rocked by bankruptcies, including the collapse of crypto billionaire Sam Bankman-Fried’s crypto exchange FTX Trading Ltd. and the Arrington XRP Capital crypto hedge fund. The acquisition of One River Digital Asset Management is set against this backdrop of market turmoil.
Coinbase is taking steps to broaden its offerings beyond crypto exchange services. The company has announced the acquisition of One River Digital, a move designed to expand into digital asset management. This comes as Coinbase and other crypto-focused businesses cut ties with crypto-friendly Silvergate Bank due to financial difficulties.
As retail crypto volumes have fallen, Coinbase has sought to offer more than just a crypto exchange. This includes the development of Base, a Layer 2 blockchain that provides easier access to the company’s products and could lead to increased adoption of cryptocurrencies.
Greg Tusar, Coinbase’s head of institutional product, told Bloomberg, “This is about wanting to bring more institutional capital into the world of crypto. We expect to build—on the other side of this crypto winter—an awesome asset-management business.”