Investment bank TD Cowen closes cryptocurrency a year after opening
Investment bank TD Cowen closes cryptocurrency a year after opening
Just over a year after launching its crypto unit, US independent investment bank TD Cowen has announced the closure of Cowen Digital, although it did not give a clear reason.
A multinational bank was launched
Cowen Digital in March 2022 provide institutional clients exposure to the crypto market through 16 crypto assets including Bitcoin ( BTC) and ether ( ETH).
At the time, the firm also teased that it would launch other services revolving around futures, derivatives and decentralized finance. While it was also powerful
hires for its European operations back in December.
However, in a new email currently circulating online and
saw from outlets like Bloomberg News, Cowen Digital and their team of roughly 10 employees will cease operations on June 1.
“Today will be the last day for the team here at Cowen Digital,” the email read. She did not disclose the reasons for the closure.
Cowen itself has been in turmoil over the past 12 months after being bought by TD Bank Group for $1.3 billion in August 2022, with the deal
completed in March of this year.
Cointelegraph has reached out to Cowen (now known as TD Cowen) for comment and will update the article if the company responds.
The shutdown comes amid a string of crypto collapses last year, along with the US
banking and regulatory misfortune in 2023.
In particular, the email indicated that the Cowen Digital team was looking to continue its work under a different organization.
“Our entire team strongly believes in the need for trusted counterparties who understand the needs of institutional investors – through high- and low-touch white-glove execution, insightful content, corporate approach and group education events. We will continue to try and fulfill that effort, but we will have to do so in a different home,” the email reads.
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Cowen Digital’s closure marks the second institutional crypto client unit to close during the week.
As Bloomberg reports in a May 25 report, the venture capital conglomerate
A group of digital currencies (DCG) has decided to close its prime brokerage subsidiary TradeBlock, with the process starting on 31
The company cited a “long crypto winter” along with a tough regulatory climate in the US Cointelegraph, which also reported in February that DCG had suffered.
$1 billion in losses in 2022 due to contagion stemming from the bankruptcy of crypto hedge fund Three Arrows Capital.
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