Coinbase Acquires One River Digital Asset Management

The crypto exchange is expanding its move beyond the core business of retail trading.

AccessTimeIconMar 3, 2023 at 2:16 p.m. UTC
Updated May 9, 2023 at 4:09 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cryptocurrency exchange Coinbase (COIN) said it bought One River Digital Asset Management, an institutional digital-asset manager, as it looks to expand beyond its core business catering to retail customers.

One River Digital, a U.S. Securities and Exchange Commission-registered subsidiary of One River Asset Management, will become Coinbase Asset Management and will "form the foundation" of Coinbase's investment advisory service for institutional clients, the exchange said in a blog post Friday. Terms of the deal weren't disclosed.

  • Why Worldcoin Is Launching a Layer 2
    20:07
    Why Worldcoin Is Launching a Layer 2
  • Polymarket Traders Bet on Fed Rate Cuts; Bitcoin Spot ETFs Register Five-Day Withdrawals Streak
    02:17
    Polymarket Traders Bet on Fed Rate Cuts; Bitcoin Spot ETFs Register Five-Day Withdrawals Streak
  • Base Monthly Active Addresses Increased by 160% in March: Nansen
    00:50
    Base Monthly Active Addresses Increased by 160% in March: Nansen
  • Bitcoin Halving: We Answer Your Questions
    04:16
    Bitcoin Halving: We Answer Your Questions
  • Coinbase has been looking to expand beyond its core retail trading business in response to the drop-off in transaction volume in recent months. Institutional investment management forms a part of that strategy, as does its move into the developer sector through its new layer 2 blockchain Base. It released Base's test network last week.

    “This is about wanting to bring more institutional capital into the world of crypto,” Greg Tusar, Coinbase’s head of institutional product, told Bloomberg. “We expect to build – on the other side of this crypto winter – an awesome asset-management business.”

    Some of Coinbase’s institutional products have come under scrutiny from regulators who have been taking a closer look at the crypto industry after the collapse of crypto exchange FTX.

    Coinbase Asset Management, which will operate as an independent unit, will be helmed by CEO and Chief Investment Officer Eric Peters, who is also CEO and CIO of One River Asset Management.

    Coinbase and One River Digital teamed up in February last year to offer One Digital's separately managed accounts to Coinbase Prime users, allowing them to hold the assets themselves while benefitting from the expertise of an external asset manager.

    UPDATE (March 3, 16:12 UTC): Adds comments by Greg Tusar in fourth paragraph, background starting in fifth.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.

    Helene Braun

    Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.