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.”
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.
Although small in comparison, Osprey Funds competes with Grayscale, whose assets are also under Coinbase’s custody. (Grayscale is 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 anonymous said.