Coinbase buys SEC-registered One River Digital Asset Management

Rick Steves

ORDAM’s chief executive and CIO Eric Peters will remain in that role as the company rebrands to Coinbase Asset Management (CBAM).

Coinbase has announced the acquisition of One River Digital Asset Management, the digital asset division of One River Asset Management, with the official motive of bridging the gap between institutions and the crypto economy.

One River Digital Asset Management (ORDAM) is an SEC-registered investment adviser and will now form the foundation of Coinbase Asset Management, offering investment advisory services to a range of new and existing institutional clients.

Coinbase caters to 25% of 100 largest hedge funds

Coinbase has recently reported more than $130 billion of quarterly institutional trading volume and over $50 billion of institutional assets on the platform. The acquisition of ORDAM can further enhance its capabilities to serve asset managers, corporations, financial institutions, and other market participants.

According to the crypto exchange company, roughly 25% of the 100 largest hedge funds in the world by reported assets under management have chosen to onboard with Coinbase, as of Q4 2022.

The acquisition follows a partnership between ORDAM and Coinbase in which the asset managemenet company now leverages Coinbase Prime to deliver differentiated investment solutions to sophisticated institutions.

The partnership between both firms also includes the creation of ONE Digital SMA, a suite of digital investment strategies and indexes in an easy-to-use separately managed account (SMA) platform powered by Coinbase Prime and Coinbase Custody, a New York DFS-qualified custodian.

The relationship between Coinbase and ORDAM goes back to the latter’s origin story as Coinbase Ventures was an early investor in ORDAM.

ORDAM’s chief executive and CIO Eric Peters will remain in that role as the company rebrands to Coinbase Asset Management (CBAM). Eric Peters will also continue leading One River Asset Management, an unaffiliated and independent business. Eric Peters is an industry veteran with over 30 years of experience in the asset management industry.

ORDAM, now Coinbase Asset Management (CBAM), will continue to operate as an independent entity under Coinbase, segregated from their trading and exchange businesses, with minimal disruption to current business activities and standard controls implemented among well-regulated and diversified financial institutions, according to Coinbase.

ONE Digital SMA is first service stemming from Coinbase – ORDAM partnership

ONE Digital SMA delivers institutional-quality digital investment strategies directly to a Coinbase Prime account. One River Digital and Coinbase Prime worked together, mapping investment processes, operational workflows, security requirements, permissions and seamless API integrations.

In collaboration, Coinbase Prime and One River Digital combine the benefits of the leading Prime trading and custody platform for digital assets, backed by the largest public cryptocurrency exchange, with the institutional fiduciary manager that executed the first large institutional allocation to digital assets.

A Coinbase Prime user can now access an institutional index and active strategies through ONE Digital SMA, all the while retaining direct ownership of their digital assets. Direct ownership of digital assets in a customer’s Coinbase Prime account is critical as it allows investors to achieve optimal transparency, security, and cost. Further, it can help maximize future return potential by enabling value-added services, such as staking.

Registered investment advisors and private wealth platforms have been asking for best-in-class digital market access, research perspectives, and investment opportunities. At the same time, they need to integrate these new investments into their existing platforms and accounting systems. ONE Digital SMA will deliver integrated market access and investment opportunities for Wealth Management firms. Financial advisors will be able to securely manage an increasingly larger proportion of their clients’ assets, especially as asset tokenization accelerates. These clients will benefit from market-leading access, custody, and institutional-quality investment management.

Read this next

Inside View, Institutional FX

Time for brokers to add options trading as volumes explode on high volatility

“Usually, adding options to the typical CFDs and equities offering leads to fragmentation of the platform technology as many brokers will need additional back-end and front-end components, and that could be an important barrier for them. Apart from that, legal hassle and costs associated with proper licensing of market data could be a barrier at first. We are seeing this trend among market data vendors and exchanges to make it easier and more affordable.”

Metaverse Gaming NFT

GCEX’s DeFi education and prime brokerage offering available in DubaiVerse

“We are excited to be part of the developments of The Sandbox and to join other top players in the region, including our regulator, Dubai’s Virtual Asset Regulatory Authority (VARA), as part of the DubaiVerse. This is a great opportunity to bridge the gap between Web3 early adopters and GCEX clients, building a community around Web3 and digital assets.”

Digital Assets

Circle wants Fed to back USDC stablecoin after “very serious stress test” with collapse of SVB

The collapse of Silicon Valley Bank allegedly proves Circle’s point that there is a need for its USDC stablecoin to be backed by the U.S. Federal Reserve with its U.S. dollars held at the Fed.

Digital Assets

Google searches for and exploded by 300% amid FTX collapse

“The findings emphasize the importance of staying on top of market trends and being able to pivot strategies quickly and also offer valuable insights into the current state of the market and the behavior of traders, providing investors with valuable information to make informed decisions about their investments.”

Institutional FX

iS Prime reports £35m turnover, £16.2 million pre-tax profits, £37 cash balances

“We have plans in place to evolve the business over the next year, driving further growth for both iS Prime and for our clients.”

Industry News

Clearwater taps BNP Paribas to combine investment accounting/reporting solutions with custody

“We invite asset owners to explore our powerful, game-changing solution that fully leverages our award-winning technology platform and BNP Paribas’ suite of custody activities. Together with BNP Paribas, we aim to extend this solution to our key core markets.”

Executive Moves hires ex-iFX EXPO Andreea Ilies as Global Head of Events

“I believe in 2023, events, trade shows and seminars will be of significant importance in the finance sector as we push forward with a more social and personalized approach to doing business.”

Executive Moves

FlexTrade hires ex-Fidessa Rajiv Shah as Head of Sales EMEA for sell-side OEMS, FlexOMS

“It’s an exciting time to join FlexTrade. From a business perspective, the firm has a demonstrable track record in creating and growing long-standing customer relationships through first-class support and a client-first approach. Alongside this, the advanced capabilities of FlexOMS make it one of the most compelling offerings available within the OEMS space.”

Digital Assets

DWF Labs invests $20 Million in Synthetix, token trading volume triples

Global Web3 venture capital and market maker DWF Labs has pledged an investment of $20 million to spur development in the growing ecosystem of Synthetix, a derivatives liquidity protocol on Ethereum.