Coinbase Acquires One River Digital to Boost Crypto Assets Access for Institutional Investors

• Coinbase acquires One River Digital for its asset management business
• The acquisition will offer advisory services to institutional clients
• Coinbase stock is currently trading at around $63, down 1% compared to yesterday

Coinbase Acquires One River Digital

Coinbase has acquired crypto asset manager One River Digital in a bid to spur growth. One River Digital is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC) and Coinbase was an early investor in the firm. This acquisition marks the formation of Coinbase Asset Management and will enable additional institutional access to the cryptoeconomy.

Objectives of Acquisition

The acquired firm „will form the foundation of Coinbase Asset Management and offer investment advisory services to a range of new and existing institutional clients.“ According to a statement from Coinbase, they share an ethos grounded in prudent risk management which has enabled both firms to successfully navigate turbulent markets. Additionally, they are culturally aligned on pursuing the opportunity in digital assets with safety as a priority.

Business Structure

One River Digital, founded in 2013, will operate as an independent business and wholly-owned subsidiary of Coinbase. Furthermore, it will continue operating separately from their trading and exchange businesses with minimal disruption to current business activities and standard controls implemented among well-regulated financial institutions.

Impact on Share Prices

Coinbase stock moved little on the news. COIN is currently trading at around $63, down 1% compared to yesterday according to data from Yahoo! Finance.

Why You Should Care

Coinbase acquiring One River Digital means that the exchange will be able to offer institutional investors better access to the crypto markets which may lead retail investors’ investments growing exponentially as more institutional whales enter the market.

5. März 2023