One River Digital Asset Management has teamed up with the US cryptocurrency exchange giant Coinbase to offer a separately managed account (SMA) platform for wealth management firms.
ONE Digital SMA for Crypto Exposure
In a press release published on Friday (February 11, 2022), One River Digital launched the ONE Digital SMA for clients of Coinbase Prime. The new offering will enable users with a Coinbase Prime account to maintain ownership of their digital assets while also accessing an institutional index and active strategies via ONE Digital SMA.
According to the announcement, there has been an increased interest from private wealth platforms and registered investment advisors seeking to offer better crypto exposure and investment opportunities for their clients.
Meanwhile, the press release noted that with the ONE Digital SMA, “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.”
One River Digital is the crypto subsidiary of One River Asset Management, an investment manager with over $2 billion in assets under management (AUM). According to One River Digital’s Chief Operating Officer and Chief Risk Officer Jasmine Burgess:
“By carefully understanding each of our technical environments, we can deliver managed accounts with institutional security and complete transparency in real time – inaugurating a new era for all SMAs beyond simply crypto underlyings. We are excited to break new ground with ONE Digital SMA, in partnership with Coinbase Prime.”
Big Players Still Cautious About the Crypto Market
Also commenting on the new service was the Head of Coinbase Institutional, Brett Tejpaul, who said:
“ONE Digital SMA is the best of both worlds – it delivers market-leading access and secure custody via Coinbase Prime and institutional grade investment products and services from One River Digital. We are thrilled to partner again with One River Digital to meet clients’ evolving needs.”
Back in September 2021, Coinbase Ventures, along with Liberty Mutual Insurance and financial giant Goldman Sachs, was involved in a Series A funding round of One River Digital that raised $41 million.
Another cryptocurrency exchange, Gemini, partnered with Bitria and the US subsidiary of one of Canada’s largest digital assets fund manager 3iQ, to launch a new digital assets SMA.
While the institutional appetite for cryptocurrency continues to increase, there are still some concerns about the industry. As previously reported by CryptoPotato back in January, security risks associated with the burgeoning industry were the primary reason for holding back from investing in crypto. Other concerns included volatility and the lack of robust crypto regulatory policies.