One River Digital Asset Management will become Coinbase Asset Management and operate as an independent business and will be a fully-owned subsidiary of the crypto exchange platform
Cryptocurrency exchange platform Coinbase has announced the acquisition of digital asset manager and registered investment adviser One River Digital Asset Management (ORDAM).
The financial terms of the deal were not disclosed.
One River Digital will become Coinbase Asset Management and operate as an independent business and will be a fully-owned subsidiary of the crypto exchange platform.
The US Securities and Exchange Commission (SEC)-registered investment adviser focuses on providing institutional customers with exposure to digital assets through its investment products.
Coinbase said that it has a history of collaboration with One River Digital. The digital asset manager utilises the former’s Coinbase Prime solution to offer differentiated investment solutions to advanced institutions.
The parties are planning to develop new digital asset management infrastructure such as ONE Digital SMA.
ONE Digital SMA is a suite of digital investment indexes and strategies on a user-friendly separately managed account (SMA) platform powered by Coinbase Prime as well as Coinbase Custody.
Besides, Coinbase Ventures was an early investor in One River Digital.
Coinbase institutional head Brett Tejpaul and Coinbase institutional product VP Greg Tusar said: “Coinbase and ORDAM share an ethos grounded in prudent risk management, a trait which has enabled both firms to successfully navigate the recent market turmoil.
“Culturally, our two organisations are strongly aligned on pursuing the opportunity in digital assets with an uncompromising priority on safety and soundness.
“With this acquisition, we are excited to welcome ORDAM’s best-in-class team to Coinbase and to partner more deeply to expand institutional access to digital assets.”
The newly formed Coinbase Asset Management is expected to deliver investment advisory services to an array of new and existing institutional clients.
Through the acquisition of One River Digital, the crypto exchange platform expects to open up new opportunities for institutions to take part in the cryptoeconomy.
Coinbase is said to have more than $130bn of quarterly institutional trading volume and institutional assets in excess of $50bn on platform.