Listed cryptocurrency exchange COINBASE is in the process of acquiring asset management firm Osprey Funds, according to two people with knowledge of the deal.
The talks are at a high level and informal at this stage, said one of the sources.
Osprey Funds declined to comment. A Coinbase spokesperson said the company doesn’t comment on “rumors and speculation.”
There’s no doubt that Coinbase has deep pockets following its April public listing and last week’s announcement of a $1.25 billion offering of convertible notes. The crypto exchange has been on a steady acquisition trail in recent years, having purchased crypto players like prime broker Tagomi, infrastructure shop Bison Trails and data platform Skew.
However, an entrance into the asset management space for Coinbase would be a new development for a firm that boasts billions in institutional assets under custody. The Osprey deal has not been finalized, both sources said.
Osprey, which is known for its bitcoin fund, was in the news recently for launching a fund specializing in Polkadot, an alternative public blockchain to Ethereum composed of fast-throughput shards known as parachains. Coinbase is the custodian for Osprey’s DOT fund.
Although small in comparison, Osprey Funds is a direct competitor to Grayscale, which is also custodied by Coinbase (and owned by CoinDesk parent company Digital Currency Group).
“There’s clearly a desire for asset management from the perspective of Coinbase,” a second person who asked to remain nameless said.
