Coinbase acquired One River Digital Asset Management (an investment manager that provides institutional clients with exposure to cryptocurrencies) without disclosing the terms and amount of the deal.
The deal comes just weeks after the two entities launched a Separately Managed Accounts (SMA) platform for wealth management companies.
- Greg Tusar, Coinbase’s head of institutional product, saying the recent acquisition is aimed at “bringing more institutional capital” into the cryptocurrency industry, as One River Digital Asset Management focuses on such clients and avoids dealing with retail clients.
“We look forward to building, on the other side of this crypto winter, an amazing asset management business,” he added.
- Following the deal, the acquired company will be renamed Coinbase Asset Management, with Eric Peters continuing 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 in the next decade”, he stated.
- Peters explained that negotiations on the deal began almost a year ago and dragged on through the crypto winter in 2022, which saw a severe market crash and countless failures. She praised Coinbase, saying it was “a pretty easy decision” to settle with it.
- the two organizations thrown out a new offering from SMA, called the ONE Digital SMA, almost two weeks ago, which seeks to provide private wealth platforms and registered investment advisors 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 a portion of its employees last summer. He fired 950 additional people earlier this year.
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off your first month’s fees for Binance Futures (terms).
PrimeXBT Special Offer: Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.