Coinbase has acquired One River Digital Asset Management to expand its services and leverage weak valuations in the digital asset industry. One River Digital Asset Management will become Coinbase Asset Management and operate as a fully-owned unit of Coinbase. The acquisition will provide institutional clients exposure to digital assets through investment products, and Eric Peters will continue to serve as CEO of Coinbase Asset Management and One River Asset Management. The move comes as the cryptocurrency exchange reported a fourth-quarter loss due to industry-wide downturn and regulatory scrutiny.
Investors have withdrawn over $6bn from Binance’s BUSD token in the past month amid regulatory scrutiny. New York’s financial regulator halted the issuance of the stablecoin due to unresolved issues with Binance’s relationship with Paxos, leading to BUSD in circulation falling by over a third. Analysts suggest that the outflow could affect Binance’s financial performance as BUSD is a significant part of its business. This comes as US authorities increase their scrutiny of the crypto industry, including stablecoins, which play a vital role in crypto trading. Coinbase also delisted BUSD due to no longer meeting listing standards.