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Coinbase to Acquire One River Digital Asset Management

Coinbase to Acquire One River Digital Asset Management

Coinbase, a prominent cryptocurrency exchange based in the United States, has announced its acquisition of One River Digital Asset Management (ORDAM), a cryptocurrency-focused hedge fund.

Coinbase stated in a blog post on March 3 that ORDAM will be transformed into Coinbase Asset Management, an independent business and a wholly-owned subsidiary of the exchange.

As a registered investment adviser under the U.S. Securities and Exchange Commission, ORDAM has previously accepted investments from Coinbase to expand its operations.

According to Coinbase, the acquisition was driven by the shared ethos of both firms grounded in prudent risk management, enabling them to successfully navigate the recent market volatility. Coinbase and ORDAM are strongly aligned in pursuing the opportunity in digital assets, prioritizing safety and soundness.

The move is seen as a significant step in the institutionalization of the cryptocurrency industry as Coinbase Asset Management aims to offer cryptocurrency investment opportunities to institutional investors. With ORDAM’s expertise and experience in cryptocurrency investment strategies, Coinbase Asset Management is expected to provide innovative, secure, and reliable cryptocurrency investment solutions.

As part of the acquisition, Coinbase revealed that One River Digital’s team would join the exchange. CEO Eric Peters would continue to lead the firm under the name Coinbase Asset Management. Coinbase said that the transition would result in minimal disruption to current business activities, indicating a smooth integration of the two firms.

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Coinbase’s acquisition of ORDAM and the move to offer more investment options to institutional clients is likely to cement its position as a leader in the rapidly evolving cryptocurrency industry.

The acquisition follows Coinbase’s announcement that it would no longer do business with Silvergate, a crypto-friendly bank, amid reports that it was under investigation by the U.S. Department of Justice over its alleged involvement in the collapse of FTX. Signature Bank has already been announced as the replacement for institutional client cash transactions for its prime customers.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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