Key Takeaways
- • Coinbase has acquired One River Digital Asset Management (ORDAM), a digital asset manager serving institutional clients, according to Reuters on March 3, 2023.
- • ORDAM will become Coinbase Asset Management and operate as a fully owned Coinbase unit.
- • The financial terms of the deal were not disclosed.
- • Eric Peters will remain chief executive of Coinbase Asset Management and of One River Asset Management, ORDAM's parent company.
- • Coinbase framed the deal as a way to expand services and take advantage of weak valuations across digital asset companies.
Summary
Coinbase Inc (COIN.O) has acquired One River Digital Asset Management (ORDAM), the cryptocurrency exchange said on Friday, March 3, 2023, according to Reuters. The company said the acquisition is part of an effort to broaden its services and to take advantage of weak valuations among digital asset companies.
Under the deal, ORDAM will become Coinbase Asset Management and operate as a fully owned unit of Coinbase. ORDAM is a digital asset manager that provides institutional clients with exposure to digital assets through investment products. Reuters reported that Coinbase did not disclose the financial details of the transaction.
Eric Peters will continue to serve as chief executive of Coinbase Asset Management as well as of One River Asset Management, the parent company of ORDAM. The continuity of leadership indicates that the investment platform and its management team will remain intact following the acquisition.
In a blog post, Coinbase said that it and ORDAM "share an ethos grounded in prudent risk management, a trait which has enabled both firms to successfully navigate the recent market turmoil." The statement points to the risk-management record of ORDAM as a key attraction for the exchange's expansion into institutional asset management.
Under the deal, ORDAM will become Coinbase Asset Management and operate as a fully owned unit of Coinbase. ORDAM is a digital asset manager that provides institutional clients with exposure to digital assets through investment products. Reuters reported that Coinbase did not disclose the financial details of the transaction.
Eric Peters will continue to serve as chief executive of Coinbase Asset Management as well as of One River Asset Management, the parent company of ORDAM. The continuity of leadership indicates that the investment platform and its management team will remain intact following the acquisition.
In a blog post, Coinbase said that it and ORDAM "share an ethos grounded in prudent risk management, a trait which has enabled both firms to successfully navigate the recent market turmoil." The statement points to the risk-management record of ORDAM as a key attraction for the exchange's expansion into institutional asset management.
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