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HomeBitcoinAmerican investment bank TD Cowen closes crypto unit

American investment bank TD Cowen closes crypto unit

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  • TD Cowen to shut down its crypto unit a year after launching.
  • The closure of Cowen Digital marks the second institutional crypto client unit to shut down within a week.

American investment bank TD Cowen announced that it will shut down its crypto unit, Cowen Digital, a year after its launch.

The bank launched Cowen Digital in March 2022 to provide institutional clients with exposure to the crypto market through 16 crypto assets, including Bitcoin and Ethereum.

At the time, the company also signaled that it might launch new services centered on futures, derivatives, and decentralized finance. As recently as December 2022, it made executive hiring for its European business.

However, Cowen Digital is going to close down, as per a 31 May Bloomberg report.

Cowen underwent a reorganization following its acquisition by TD Bank Group for $1.3 billion in August 2022, with the deal finalized in March 2023.

Second crypto unit closes down within a week

The bank’s decision to close down comes on the heels of a series of crypto firm failures last year, as well as U.S. banking and regulatory issues in 2023.

The closure of Cowen Digital marks the second institutional crypto client unit to shut down within a week.

It was only recently that the Digital Currency Group (DCG) decided to liquidate its main brokerage business TradeBlock, with the process beginning 31 May.

The firm highlighted a “prolonged crypto winter” as well as a difficult regulatory climate in the U.S.

In February, DCG reported a $1 billion loss for FY 2022 as a result of the contagion caused by the collapse of crypto hedge firm Three Arrows Capital.

Cowen Digital’s comment on the news seen by Bloomberg reads as follows,

“Our entire team believes strongly in the need for trusted counterparties who understand the needs of institutional investors – through white-glove high and low touch execution, deep knowledge-driven content, corporate access and group educational events. We will continue to try and fulfill that endeavor, but will have to do so in a different home.”

This article originally appeared here.

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The post American investment bank TD Cowen closes crypto unit appeared first on CryptosRus.

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