Coinbase Expands Beyond Retail Trading with Acquisition of One River Asset Management

Coinbase Acquires One River Digital Asset Management

  • Cryptocurrency exchange Coinbase has acquired One River Digital Asset Management, a US-based SEC-registered institutional digital-asset manager.
  • The acquisition aims to expand Coinbase’s business beyond its core retail trading services and into the area of institutional investment management.
  • Coinbase Asset Management will be helmed by CEO and Chief Investment Officer Eric Peters.

Background on Coinbase

Coinbase is a cryptocurrency exchange that primarily focuses on retail trading. Recently, however, the exchange has been looking to expand beyond this core business in response to a drop off in transaction volume. To do so, Coinbase has made moves into the developer sector with its layer 2 blockchain Base as well as into the world of institutional investment management.

One River Digital Acquisition

On Friday 3 March 2021, Coinbase announced that it had acquired One River Digital Asset Management – an institutional digital asset manager registered by the U.S. Securities and Exchange Commission (SEC) – as part of its expansion efforts. The deal was not disclosed but Coinbase said that One River would become “Coinbase Asset Management” and form the foundation of its investment advisory service for institutional clients.
Greg Tusar, head of institutional product at Coinbase told Bloomberg: “This is about wanting to bring more institutional capital into the world of crypto…We expect to build—on the other side of this crypto winter—an awesome asset-management business.”

Regulatory Scrutiny

Some of Coinbase’s products have come under scrutiny from regulators who have been taking a closer look at the crypto industry since the collapse of FTX. However, despite this regulatory tension, Coinbase appears determined to press ahead with their expansion plans and provide more opportunities for institutions wishing to invest in cryptocurrencies through their platforms.

Leadership Team

The newly formed unit – “Coinbase Asset Management” – will be helmed by CEO and Chief Investment Officer Eric Peters who is also CEO and CIO at One River Asset Management; a multi-billion dollar alternative asset manager with offices across North America and Europe.. In addition, Sean Healy will join as Head of Product; he has previously held roles at Goldman Sachs and BlackRock where he built out ETFs for both companies. Lastly, Andrew Killion will join as Head of Trading; he was formerly Global Head Trader at Guggenheim Investments where he managed over $100 billion AUM across multiple strategies including equities, fixed income, currencies & commodities and structured products.

< h2 >Conclusion
It appears that Coinbase is continuing to push forward with its strategy for growth which involves expanding beyond its core retail trading business into areas such as Institutional Investment Management . With one eye focused on regulation , it looks like there are exciting times ahead for this pioneering crypto exchange .