Coinbase has announced its acquisition of One River Digital Asset Management (ORDAM) in a bid to expand services and capitalize on the weak valuations of digital asset firms.
The financial terms of the deal were not disclosed, however, ORDAM will now operate as Coinbase Asset Management, a fully-owned subsidiary of Coinbase. ORDAM is a digital asset manager that offers institutional clients exposure to digital assets through investment products.
Eric Peters will remain as the CEO of Coinbase Asset Management and One River Asset Management, the parent company of ORDAM. Coinbase said in a blog post that the two firms share an ethos based on “prudent risk management,” which has helped them navigate market volatility.
This acquisition follows Coinbase’s Q4 loss, which was caused by a downturn in trading volume from industry-wide issues. In light of increased regulatory scrutiny following high-profile bankruptcies, Coinbase’s CEO Brian Armstrong stated that the development would ultimately benefit the company.
Trading volume at the crypto exchange plummeted to $145 billion in Q4 2021 compared to $547 billion in the previous year.
Comments are closed.