Coinbase Confirms the Acquisition of One River Digital Asset Management
- Coinbase, a crypto exchange, has acquired One River Digital Asset Management (ORDAM), which will be rebranded to Coinbase Digital Asset Management (CDAM).
- Following the transition, ORDAM’s team will also join the crypto exchange under the continued leadership of the firm’s current CEO, Eric Peters.
- The exchange noted in the announcement that Peters has an experience of around 30 years in the industry.
- ORDAM will operate under the crypto exchange as its wholly owned subsidiary, and Coinbase wants the transition to happen with “minimal disruption.”
Coinbase, the largest crypto exchange in the United States, has been making several headlines recently as it aims to increase its industry presence amid declining market share and falling stock prices. Although the company recently laid off a significant part of its workforce, it announced the acquisition of a prominent digital asset management company called One River. The management firm has been around since 2013 and was founded by CEO Eric Peters.
According to an announcement from Coinbase, One River Digital Asset Management (ORDAM) will gradually transition to become Coinbase Asset Management (CBAM) and will now operate as an independent and wholly-owned subsidiary of the crypto exchange. Following the announcement, the stock price of the crypto exchange went up around 1.2%, and COIN traded at around $64.51 after market close on March 3.
“Coinbase and ORDAM share an ethos grounded in prudent risk management, a trait that 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. With this acquisition, we are excited to welcome ORDAM’s best-in-class team to Coinbase and to partner more deeply to expand institutional access to digital assets,” noted the crypto exchange in the blog post.
Interestingly, it has also been confirmed that following the transition of ORDAM to CDAM, the former’s team will also join the crypto exchange under the continued leadership of the digital asset management firm’s current CEO, Eric Peters. Coinbase noted in the announcement that Peters has an experience of around 30 years in the industry.
It is crucial to note that ORDAM is registered with the Securities and Exchange Commission (SEC) as an investment adviser, and the crypto exchange wants “minimal disruption to current business activities” amid the transition.
“ORDAM 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,” said the crypto exchange.
Coinbase has recently started expanding its presence in the crypto space after experiencing unfavorable circumstances in 2022, and as a result, it has also launched a propaganda campaign against the SEC for its unfair treatment of crypto exchanges. Interestingly, institutional interest in the crypto exchange remains high, as Cathie Wood’s ARK Invest recently scooped up $9.2 million worth of Coinbase (COIN) shares in mid-Fed.
The crypto exchange noted that as of Q4 2022, roughly 25% of the 100 largest hedge funds in the world by assets under management wanted to work with Coinbase. The exchange noted that the acquisition of ORDAM “aligns with our long-term strategy to unlock further opportunities for institutions to participate in the cryptoeconomy.”