Coinbase Acquires River Digital
Coinbase, a cryptocurrency exchange based in the United States, has acquired cryptocurrency-focused hedge fund One River Digital Asset Management.
Coinbase announced in a blog post on March 3 that One River Digital will become Coinbase Asset Management, “an independent business and wholly-owned subsidiary” of the crypto exchange. One River Digital is a registered investment adviser with the Securities and Exchange Commission and has previously accepted Coinbase investments to scale its operations.
“Coinbase and ORDAM share an ethos grounded in prudent risk management, a trait which has enabled both firms to successfully navigate the recent market turmoil,” said Coinbase. “Culturally, our two organizations are strongly aligned on pursuing the opportunity in digital assets with an uncompromising priority on safety and soundness.”
As part of the deal, Coinbase said One River Digital’s team would join the crypto exchange, and Peters would continue to lead the rebranded company. During the transition, there should be “minimal disruption to current business activities,” according to the exchange.
Coinbase led the charge in a slew of crypto firms cutting ties with Silvergate amid reports the bank was under investigation by the US Department of Justice for its alleged involvement in FTX’s demise. Signature Bank has already announced that it will take over institutional client cash transactions for its top customers.
(With inputs from Shikha Singh)
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