Coinbase Acquires One River: Institutional Investors Get Access to Crypto Assets

• Coinbase announces the acquisition of One River Digital Asset Management (ORDAM) to create a new subsidiary called Coinbase Asset Management (CBAM).
• CBAM will focus on providing institutional consumers with “industry-leading products and services” and an ethos grounded in prudent risk management.
• Eric Peters, ORDAM’s current CEO, will continue chairing CBAM after the acquisition.

Coinbase Acquires One River Digital Asset Management

Coinbase announced the acquisition of One River Digital Asset Management (ORDAM) on Mar. 3. Under Coinbase, ORDAM will transform into Coinbase Asset Management (CBAM), which will operate as an independent subsidiary wholly owned by Coinbase.

Purpose of Acquisition

The two companies are joining together „to build an innovative digital asset management infrastructure.“ According to the announcement, both firms share an ethos grounded in prudent risk management that has enabled them to successfully navigate recent market turbulence.

Focus On Institutional Consumers

CBAM will focus on institutional consumers and provide them with “industry-leading products and services”. ORDAM was previously a subsidiary of One River Asset Management, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). As a digital asset manager, it focused on exposing institutional clients to digital assets by offering investment products through Coinbase Prime.

Eric Peters Remains CEO

Eric Peters, ORDAM’s current CEO, will remain in his duty and continue chairing CBAM after the acquisition is complete.

Conclusion

The acquisition of ORDAM marks another major step forward for Coinbase as it continues to expand its offerings for institutions interested in investing in digital assets such as Bitcoin and Ethereum. With this move, it is likely that more institutional investors will be exposed to crypto investments soon and may potentially drive up demand for cryptocurrencies like Bitcoin even further over time