Coinbase in Talks to Buy Asset Manager Osprey Funds: Sources

“Publicly traded 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 exchange has been on a steady acquisition trail in recent years, having purchased such crypto companies as prime broker Tagomi, infrastructure shop Bison Trails and data platform Skew.

But asset management would be a new business for Coinbase, which has billions of dollars in institutional assets under custody. The Osprey deal hasn’t been finalized, both sources said.”