- One River Digital is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC).
- Coinbase was an early investor in One River Digital.
- The acquisition of One River Digital will form Coinbase’s asset management business and offer “advisory services to a range of new and existing institutional clients.”
Coinbase, one of the largest centralized crypto exchanges in the world, is stepping up its asset management game.
On Friday, Coinbase announced that it has acquired One River Digital, an asset management firm focused on cryptocurrencies that Coinbase was an early investor.
Coinbase said the acquired firm “will form the foundation of Coinbase Asset Management and offer investment advisory services to a range of new and existing institutional clients.”
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“Coinbase and [One River Digital] share an ethos grounded in prudent risk management, a trait which has enabled both firms to successfully navigate the recent market turmoil. Culturally, our two organizations are strongly aligned on pursuing the opportunity in digital assets with an uncompromising priority on safety and soundness.”
One River Digital, founded in 2013, will operate as an independent business and wholly-owned subsidiary of Coinbase.
“[One River Digital] will continue to operate as an independent entity under Coinbase, segregated from our trading and exchange businesses, with minimal disruption to current business activities and standard controls implemented among well-regulated and diversified financial institutions.”
Coinbase stock moved little on the news. COIN is currently trading at around $63, down 1% compared to yesterday, according to data from Yahoo! Finance.
On the Flipside
- Coinbase didn’t provide specific details about the acquisition.
Why You Should Care
Coinbase acquiring One River Digital means that the exchange will be able to offer institutional investors better access to the crypto markets. This might mean retail investors’ investments might grow exponentially as institutional whales enter the markets.
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Read more about a recent Coinbase survey:
20% of Americans Own Crypto: Coinbase Survey
