Coinbase acquired One River Digital Asset Management (an investment manager that provides institutional clients with exposure to cryptocurrencies) without disclosing the terms and sum of the deal.
The deal comes weeks after the two entities rolled out a separately managed account (SMA) platform for wealth management firms.
- Greg Tusar – Head of Institutional Products at Coinbase – said the recent acquisition aims to “bring more institutional capital” into the cryptocurrency industry since One River Digital Asset Management focuses on these clients and avoids dealing with retail clients.
“We plan to build – on the other side of this crypto winter – a tremendous asset management business,” he added.
- Following the deal, the acquired company will be renamed Coinbase Asset Management, while Eric Peters will continue to serve as CEO and CIO.
“Having a dual role gives me insight into the worlds of digital and traditional assets. I bet on the convergence between the two over the next decade,” he said.
- Peters explained that negotiations on the deal began nearly a year ago and dragged on through the crypto winter of 2022, which saw a severe market meltdown and countless failures. He praised Coinbase, saying it was “a pretty easy decision” to strike a deal with it.
- The two organizations spear a new SMA offering, called ONE Digital SMA, nearly two weeks ago, seeking to provide private wealth platforms and registered investment advisers with better exposure and crypto opportunities.
- The move could be seen as a breath of fresh air for Coinbase, which was negatively affected by the prolonged bear market and laid off some of its employees last summer. He fired 950 more people earlier this year.
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