U.S.-based cryptocurrency exchange Coinbase has acquired cryptocurrency-focused hedge fund One River Digital Asset Management, or ORDAM.
In a March 3 blog post, Coinbase said that One River Digital would transform into Coinbase Asset Management, a “separate business and wholly-owned subsidiary” of the cryptocurrency exchange. One River Digital, which is registered as an investment advisor with the SEC, has previously accepted investment from Coinbase to expand its business.
“Coinbase and ORDAM share a philosophy based on prudent risk management, a characteristic that has enabled both companies to successfully navigate the recent market volatility,” Coinbase said. “Culturally, our two organizations are very aligned in pursuing opportunities in digital assets , and uncompromisingly prioritize safety and robustness." As part of the acquisition, Coinbase said the team from One River Digital will join the cryptocurrency exchange, while Peters will remain as the leader of the rebranded company. The exchange recommends "minimal disruption to current business activities" during the transition.
News of the acquisition comes after Coinbase led a flurry of cryptocurrency firms cutting ties with Silvergate amid reports that the bank is being investigated by the U.S. Department of Justice for its alleged involvement in the collapse of FTX. The cryptocurrency exchange has announced that Signature Bank will take over cash transactions for institutional clients of its major clients.
