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American boutique investment bank Cowen Inc. is spinning off its crypto asset unit. It has become the latest financial institution to shy away from digital assets amid a deepening regulatory environment.
“Today will be the last day for the team at Cowen Digital,” the bank said on May 31. reports by Bloomberg.
In March, financial services firm Cowen was acquired by TD Bank Group, one of the largest banks in North America.
Bank Cooling on Crypto
Cowen’s digital assets unit was launched just over a year ago to enable institutional clients to invest in 16 crypto assets.
The Cowen team indicated that they may still offer crypto services but not under the TD Bank umbrella. The email to investors stated:
“Our entire team believes strongly in the need for trusted counterparties that understand the needs of institutional investors (…) We will continue to strive to fulfill that endeavor, but will have to do so in a different home,”
The Cowen Digital closure adds to a growing list of US financial firms shying away from bitcoin and its brethren.
Other Entities Leaving the Crypto Space
In late May, it was reported that Digital Currency Group (DCG) announced the closure of its prime brokerage subsidiary, TradeBlock. The firm attributed the decision to “broad economy conditions and a prolonged crypto winter, as well as the challenging regulatory environment for digital assets in the US”.
On May 10, crypto potato reported that two of the world’s leading market-making firms also pulled the plug on their crypto trading plans.
Jane Street Group said the murky regulatory waters “made it difficult for the firm to operate the business in a manner that met internal standards.” Meanwhile, Jump Trading echoed the sentiment, saying that it is ditching the US markets for crypto trading.
With several big players in the crypto industry including Coinbase, Gemini and Galaxy Digital already making moves overseas while maintaining a presence in the US, it is likely that more will follow as Uncle Sam’s war on crypto rages on.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
[ad_1]
American boutique investment bank Cowen Inc. is spinning off its crypto asset unit. It has become the latest financial institution to shy away from digital assets amid a deepening regulatory environment.
“Today will be the last day for the team at Cowen Digital,” the bank said on May 31. reports by Bloomberg.
In March, financial services firm Cowen was acquired by TD Bank Group, one of the largest banks in North America.
Bank Cooling on Crypto
Cowen’s digital assets unit was launched just over a year ago to enable institutional clients to invest in 16 crypto assets.
The Cowen team indicated that they may still offer crypto services but not under the TD Bank umbrella. The email to investors stated:
“Our entire team believes strongly in the need for trusted counterparties that understand the needs of institutional investors (…) We will continue to strive to fulfill that endeavor, but will have to do so in a different home,”
The Cowen Digital closure adds to a growing list of US financial firms shying away from bitcoin and its brethren.
Other Entities Leaving the Crypto Space
In late May, it was reported that Digital Currency Group (DCG) announced the closure of its prime brokerage subsidiary, TradeBlock. The firm attributed the decision to “broad economy conditions and a prolonged crypto winter, as well as the challenging regulatory environment for digital assets in the US”.
On May 10, crypto potato reported that two of the world’s leading market-making firms also pulled the plug on their crypto trading plans.
Jane Street Group said the murky regulatory waters “made it difficult for the firm to operate the business in a manner that met internal standards.” Meanwhile, Jump Trading echoed the sentiment, saying that it is ditching the US markets for crypto trading.
With several big players in the crypto industry including Coinbase, Gemini and Galaxy Digital already making moves overseas while maintaining a presence in the US, it is likely that more will follow as Uncle Sam’s war on crypto rages on.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
