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 become Coinbase Asset Management, “an independent business and wholly owned subsidiary” of the cryptocurrency exchange.. One River Digital is registered as an investment adviser under the US Securities and Exchange Commission, and has previously accepted investment from Coinbase to scale its operations.
“Coinbase and ORDAM share an ethic based on prudent risk management, a trait that has enabled both companies to successfully navigate recent market turmoil,” Coinbase said. “Culturally, our two organizations are strongly aligned in pursuing opportunity in digital assets with an uncompromising priority on security and robustness.”
As part of the acquisition, Coinbase said the One River Digital team would join the cryptocurrency exchange and CEO Eric Peters would remain as a leader under the renowned firm. The exchange suggested a “minimum disruption to current business activities” amid the transition.
News of the acquisition came after Coinbase led a series of cryptocurrency firms cutting ties with Silvergate amid reports that the bank was under investigation by the US Department of Justice for its alleged involvement in the FTX collapse. The exchange has already announced that Signature Bank will take over institutional client cash transactions for its major clients.
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