US-based cryptocurrency exchange Coinbase is reportedly pursuing talks to takeover asset management firm Osprey Funds.
The discussions are at an advanced stage and informal currently, Coindesk reported citing two people familiar with the development.
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Osprey, which provides digital asset solutions, is known for its bitcoin fund. The firm recently introduced a new fund specialising in Polkadot.
Polkadot is an alternative public blockchain to Ethereum.
Coinbase is the custodian for Osprey’s funds. Meanwhile, Grayscale, whose assets are also under Coinbase’s custody, is a rival to Osprey Funds.
“There’s clearly a desire for asset management from the perspective of Coinbase,” a source told the publication.
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By GlobalDataOsprey Funds and Coinbase did not comment on the report.
Coinbase has a made slew of purchases recently. It acquired data analytics platform Skew, blockchain infrastructure group Bison Trails, and brokerage Tagomi.
The Osprey deal would allow the firm to expand into the digital asset management space.
Last month, Deutsche Boerse delisted Coinbase from its Xetra trading platform and the Frankfurt stock exchange.
The German stock exchange operator cited missing reference data for the shares of Coinbase as the reason for removal.
Coinbase made its debut on Nasdaq debut last month in what is considered to be a major turning point for bitcoin and other digital assets in the traditional trading space.
The listing of the firm said to be the biggest till date for a cryptocurrency company, with its market capitalisation briefly surpassing $100bn on its first day of trading.
In February this year, American investment manager BNY Mellon launched a new enterprise Digital Assets unit to speed up the development of enterprise solutions to serve the digital asset space.
