Coinbase Bets On Institutional Clients With One River Digital Acquisition
- Coinbase Global Inc. has purchased One River Digital Asset Management.
- One River is a digital asset management firm that caters to institutional clients.
- The crypto exchange is looking to tap into institutional demand by acquiring the digital asset manager.
- The digital asset manager will be rebranded as Coinbase Asset Management.
Coinbase Global Inc. has acquired One River Digital Asset Management, a subsidiary of One River Asset Management, in what seems to be a foray into the more stable part of the crypto industry. The American crypto exchange looking to tap into the institutional demand for crypto with the purchase of One River Digital
Coinbase Asset Management for institutional clients
One River Digital Asset Management is a Securities and Exchange Commission (SEC) registered firm that caters to the digital asset needs of institutional clients. According to a blog post by Coinbase, the digital asset manager is set to be rebranded as Coinbase Asset Management (CBAM). CBAM will operate as an independent business and wholly-owned subsidiary of the crypto exchange. The acquisition of One River Digital is expected to form the foundation of CBAM and offer advisory services to institutional clients.
This is about wanting to bring more institutional capital into the world of crypto. We expect to build — on the other side of this crypto winter — an awesome asset-management business.”
Greg Tusar, Coinbase’s head of institutional product.
While the terms of the deal have not been disclosed, a report by Bloomberg stated that Coinbase was part of a financing round for One River Digital in 2021. The digital asset manager was valued at $187 million at the time. One River Digital’s founder, Eric Peters, will serve as CBAM’s CEO and Chief Investment Officer. CBAM will also retain One River Digital’s advisor, Jay Clayton, who is a former SEC Chairman. Clayton told Bloomberg that there are a lot more “strategic combinations” to come in the future, as TradeFi players explore potential acquisitions of distributed ledger and blockchain firms.
Coinbase and One River Digital have previously worked together and have a history of close partnership. Apart from the acquisition, both firms are partnering up to develop innovative digital asset management infrastructure such as ONE Digital SMA, which was jointly developed by them.