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.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.“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.