Cryptocurrency exchange Coinbase (COIN) said it bought One River Digital Asset Management, an institutional digital-asset manager that‘s registered with the U.S. Securities and Exchange Commission, as it looks to expand beyond its core business catering to retail customers.
Terms of the deal weren‘t disclosed.
One River Digital, a 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.
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.
One River Digital will continue to 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.
