Coinbase acquires digital asset tech startup One River Digital to expand beyond retail trading
Cryptocurrency exchange Coinbase has acquired One River Digital as it looks to expand its footprint beyond its core retail trading offering. The financial details of the deal were not disclosed.
In an announcement on Friday, Coinbase said the acquisition is aimed to shore up its crypto services and take advantage of weak valuations of digital asset companies. One River Digital is a U.S. Securities and Exchange Commission-registered subsidiary of One River Asset Management (ORDAM).
As part of the acquisition agreement, Coinbase Asset Management, which will operate as an independent unit, will be led by CEO and Chief Investment Officer Eric Peters, who will also serve as the CEO and CIO of One River Asset Management.
“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,” Coinbase said in a blog post.
According to Reuters, Coinbase has been looking to expand beyond its core retail trading business in response to the lower transaction volume in recent months. ORDAM provides institutional clients with exposure to digital assets through investment products.
“This is about wanting to bring more institutional capital into the world of crypto,” Greg Tusar, Coinbase’s head of institutional product, told Bloomberg. “We expect to build – on the other side of this crypto winter – an awesome asset-management business.”
As we reported on multiple occasions, Coinbase along with other crypto companies has seen increased regulatory scrutiny in recent months in the wake of FTX and other crypto company failures. In addition, some of Coinbase’s institutional products have also come under scrutiny from US regulators.
Founded in 2012 by Brian Armstrong and Fred Ehrsam, the San Francisco, California-based Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin, Ethereum, and Litecoin.