March 28, 2023

Coinbase Acquires One River Digital Asset Management to Expand Institutional Presence in Crypto Industry

Coinbase, one of the world’s largest cryptocurrency exchanges, has acquired One River Digital Asset Management, an investment manager that provides institutional clients with exposure to cryptocurrencies. The terms and sum of the agreement were not disclosed.

The acquisition comes just a few weeks after the two entities rolled out a separately managed account (SMA) platform for wealth management firms. According to Greg Tusar, Coinbase’s head of institutional product, the recent acquisition aims to “bring more institutional capital” into the cryptocurrency industry.

One River Digital Asset Management focuses on institutional clients and avoids dealing with retail customers. Tusar believes that this acquisition will help Coinbase build an “awesome asset-management business” once the crypto winter is over.

Following the deal, the acquired company will be renamed Coinbase Asset Management, while Eric Peters will continue serving as CEO. The acquisition is expected to help Coinbase expand its institutional presence in the crypto industry and attract more institutional investors to the platform.

Coinbase has been expanding its offerings to institutional clients in recent years, including launching a custody service for institutional investors and partnering with major financial institutions to offer cryptocurrency trading services. The acquisition of One River Digital Asset Management is another step in this direction and is expected to help Coinbase become a leading player in the institutional crypto market.

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