Coinbase Expands Its Forces, Acquires Digital Asset Manager One River

Coinbase has recently acquired digital asset manager One River (ORDAM), a leading institutional digital asset manager, and the Securities and Exchange Commission (SEC), a registered investment advisor.

The newly acquired digital asset manager was announced via a blog post, stating that it will become Coinbase Asset Management (CBAM), operating as an independent business and a “wholly owned” subsidiary of the exchange; they added:

In furthering our goal of bridging the gap between institutions and the crypto economy, we’re excited to announce that Coinbase has acquired One River Digital Asset Management, a subsidiary of One River Asset Management.

Furthermore, according to the announcement of the U.S.-based crypto exchange, One River will also form the basis of Coinbase Asset Management, providing advisory services to future institutional clients. 

On the other hand, Eric Peters will continue to serve as the CEO/CIO of One River. According to the exchange, One River will continue to operate as an independent entity under Coinbase. 

Coinbase Renew Its Forces 

The crypto exchange had a very turbulent month of February and has started March at the same pace. One River, founded by macro trader Eric Peters in 2013, will allow Coinbase to expand its reach to more customers. Coinbase concluded:

We welcome top talent at Coinbase, and the One River Digital Asset Management team represents the best expertise in their field. We look forward to working with them in building our asset management business and providing industry-leading products and services to the institutions we support. 

The new announcement follows the recent end of Coinbase’s partnership with crypto-friendly bank Silvergate due to the financial institution delaying filing its annual financial report, which has caused concern among investors and the exchange team itself. The crypto exchange claims it holds “minimum” exposure to Silvergate.

In addition, One River will be a consultant for the exchange and its services following the recent crypto crackdown by the SEC and regulators in the US jurisdiction. 

Coinbase and One River digital previously worked together in February 2022 when the asset manager offered the ONE digital SMA solution for wealth managers. Coinbase Prime worked with One River Digital to map investment processes, operational workflows, security requirements, and permissions to create a best-in-class solution for institutions.

COIN’s shares are trading at $63.91 on the Nasdaq Stock Market. COIN has fallen from its high of $66 following its break up with Silvergate. The stock has recovered after announcing the acquisition of digital asset manager One River. 

After trading sideways since the opening bell, COIN shares have gained a slight margin of 0.03% over the past 24 hours and 0.05% over the past seven days.

Feature image from Unsplash, chart from TradingView.com.