Crypto trader Coinbase Global Inc mulls asset manager tie-up
The group is reportedly in high levels talks with Osprey Funds, an investment firm that rose to prominence recently with the launch of a new Polkadot fund
(), the cryptocurrency trading platform, is reportedly mulling a merger with digital asset manager Osprey Funds as it moves to diversify its business away from its core exchange platform.
According to a Coindesk report citing individuals with knowledge of the deal, Coinbase is currently engaged in high level and informal talks with Osprey, which hit the headlines in late April when it launched a new fund focused on the Polkadot cryptocurrency.
READ: Coinbase tumbles below IPO price amid crypto massacre
While Coinbase is not averse to acquisitions, having previously snapped up other firms such as data analytics platform Skew, blockchain infrastructure group Bison Trails and brokerage Tagomi, asset management will be a new business sector for the group and would put it into competition with larger players in the space such as Grayscale, a digital investment firm with billions of dollars under its management.
A merger and new business segment could also prove appealing for Coinbase as it looks to recover from this week’s crash in the crypto markets.
The company’s shares have fallen around 9.5% this week amid the downturn in digital currencies, meaning the company is currently trading below its listing reference price of US$250 just over a month after making its debut on the Nasdaq.
Shares in Coinbase were up 0.8% at US$235.36 in pre-market trading in New York on Friday.
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