United States-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 One River Digital will transition into Coinbase Asset Management, an “independent business and wholly owned subsidiary” of the crypto exchange. One River Digital is registered as an investment advisor with the US Securities and Exchange Commission, and has previously received investment from Coinbase to scale its operations.
“Coinbase and ORDAM share an ethos based on prudent risk management, a trait that has enabled both companies to successfully weather the recent market turmoil,” Coinbase said. “Culturally, our two organizations are strongly aligned to pursue opportunities in digital assets with an uncompromising priority on safety and health.”
As part of the acquisition, Coinbase said the One River Digital team will join the crypto exchange and chief executive officer Eric Peters will remain at the helm of the rebranded company. The exchange suggested “minimal disruption to current business activities” amid the transition.
related: Coinbase partners with One River to roll out a new institutional platform
The news of the acquisition follows Coinbase leading many crypto companies to cut ties with Silvergate amid reports the bank is under investigation from the US Department of Justice over its alleged involvement in the collapse of FTX. The crypto exchange has announced that Signature Bank will take over the cash transactions of institutional clients for its main customers.