Coinbase Global Inc. has made a strategic move in acquiring One River Digital Asset Management to cater to the institutional demand for crypto. This acquisition is expected to form the foundation of Coinbase Asset Management (CBAM), which will offer advisory services to institutional clients. The acquisition comes as Coinbase aims to tap into the more stable part of the crypto industry.
CBAM: Coinbase Asset Management for Institutional Clients
Coinbase Global Inc. has acquired One River Digital Asset Management, a Securities and Exchange Commission (SEC) registered firm, to cater to the digital asset needs of institutional clients. One River Digital Asset Management will now be rebranded as Coinbase Asset Management (CBAM). According to a blog post by Coinbase, 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.
One River Digital’s Expertise in Institutional Demand
One River Digital Asset Management is a digital asset management firm that caters to the needs of institutional clients. The acquisition of One River Digital by Coinbase Global Inc. is a strategic move to tap into the institutional demand for crypto. The acquisition is expected to bring more institutional capital into the world of crypto, which will create an awesome asset-management business, according to Greg Tusar, Coinbase’s head of institutional product.
Eric Peters to Serve as CBAM’s CEO and Chief Investment Officer
The terms of the deal between Coinbase Global Inc. and One River Digital Asset Management have not been disclosed. However, a report by Bloomberg states that Coinbase was part of a financing round for One River Digital in 2021. One River Digital 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.
Partnership and Future Acquisitions
Coinbase Global Inc. and One River Digital have a history of close partnership. Apart from the acquisition, both firms have jointly developed innovative digital asset management infrastructure such as ONE Digital SMA. According to Jay Clayton, there are a lot more “strategic combinations” to come in the future, as TradeFi players explore potential acquisitions of distributed ledger and blockchain firms.