Coinbase has acquired One River Digital Asset Management (ORDAM), the cryptocurrency exchange said on Friday as it aims to beef up services and take advantage of weak valuations of digital asset companies.
The company did not disclose the financial details of the
deal, in which ORDAM will become Coinbase Asset Management and operate as a
fully-owned unit of Coinbase.
ORDAM is a digital asset manager that provides institutional
clients exposure to digital assets through investment products.
Eric Peters will continue to serve as chief executive of
Coinbase Asset Management as well as One River Asset Management, the parent
company of ORDAM.
"Coinbase and ORDAM share an ethos grounded in prudent
risk management, a trait which has enabled both firms to successfully navigate
the recent market turmoil," Coinbase said in a blog.
Meanwhile, last month Coinbase Global reported a
fourth-quarter loss, as trading volume at the cryptocurrency exchange came
under pressure from an industry-wide downturn triggered by a string of
high-profile bankruptcies.
The digital assets market suffered from dour sentiment over
the last year, but the biggest blow to the sector came from the bankruptcy of
Sam Bankman-Fried's major crypto exchange FTX in November.
"In the wake of FTX and other crypto company failures,
we have seen increased regulatory scrutiny," Chief Executive Brian
Armstrong said on a call with analysts but added the development will
ultimately benefit Coinbase.
Amid the market downturn, trading volume at the crypto
exchange plunged to $145 billion in the fourth quarter, compared with $547
billion a year earlier. © Reuters