- Deal details not disclosed
- Its founder, Eric Peters, will become the CEO of the firm.
Coinbase Global Inc is expanding and buys One River Digital Asset Management based on institutional demand. Negotiations for the purchase began a year ago, but not the best market conditions significantly slowed down this process.
One River Digital was founded by trader Eric Peters. She built the business to serve only institutional clients, such as a pension fund. This indicates an emphasis on long-term asset management rather than trading. Therefore, this approach made the company practically independent of token price fluctuations and crypto exchange activity.
Greg Tusar, Head of Institutional Products at Coinbase, stated:
“We aim to attract more institutional capital to the crypto industry and build an asset management business despite the crypto winter.”
After the purchase, the company will be called Coinbase Asset Management. Peters will become CEO and part-time IT director.
“Working in two positions gives me more understanding of the world of cryptocurrencies,” said the 56-year-old.
Eric has already started and has brought in Jay Clayton, former SEC chairman, as an advisor. It was Clayton who led the crackdown by the Securities and Exchange Commission that killed the ICO market.
“We will see many more strategic combinations. Financial players are starting to think about acquiring blockchain companies, especially those without regulatory risk,” Clayton said.
