One River Digital Asset Management joins Coinbase

One River Digital’s staff will join Coinbase, while CEO Eric Peters will continue to lead the rebranded firm.

The United States-based cryptocurrency exchange Coinbase has purchased One River Digital Asset Management, or ORDAM, a cryptocurrency-focused hedge fund.

One River Digital will become Coinbase Asset Management, a “autonomous company and wholly-owned subsidiary” of the cryptocurrency exchange, according to a blog post published by Coinbase on March 3.

One River Digital is registered with the U.S. Securities and Exchange Commission as an investment advisor and has previously taken funding from Coinbase to grow its operations.

“Both Coinbase and ORDAM adhere to a philosophy based on sensible risk management, which has allowed them to effectively traverse the current market upheaval,” said Coinbase.

“Culturally, our two firms are well aligned in our pursuit of the opportunities in digital assets while maintaining an unwavering commitment to safety and soundness.”

As part of the transaction, Coinbase said that One River Digital’s employees will join the crypto exchange and CEO Eric Peters would continue to oversee the renamed company.

The conversation indicated “little interruption of present company operations” throughout the shift.

The deal was announced after Coinbase led a group of crypto businesses in severing relations with Silvergate after news that the bank was under investigation by the U.S. Department of Justice for its suspected role in the collapse of FTX.

The cryptocurrency exchange has previously stated that Signature Bank would take over cash transactions for its institutional clients.