Investment bank TD Cowen closes crypto unit a year after opening

Just a year after launching its crypto unit, American independent investment bank TD Cowen has announced the closure of Cowen Digital, although it has not given a clear reason.

The multinational bank launched Cowen Digital in March 2022 to 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 additional services revolving around futures, derivatives and decentralized finance. while it also created the executive gives work For its European operations as recently as December.

However, in a new email that is currently circulating online and saw Bloomberg News, Cowen Digital and its team of about 10 employees will be closing on June 1.

“Today will be the last day for the team at Cowen Digital,” the email said. The reasons for the closure were not disclosed.

Cowen Bank went through a shake-up over the past 12 months, after it was acquired by TD Bank Group in August 2022 for $1.3 billion. Completed In March this year.

Cointelegraph has reached out to Cowen (now known as TD Cowen) for comment and will update the article if the company responds.

With the US banking and regulatory crisis looming in 2023, the past year saw the shutdown amid several crypto company collapses.

Specifically, the email suggested that the Cowen Digital team wanted to do its work under a separate organization.

“Our entire team believes strongly in the need for trusted counterparties that understand the needs of institutional investors – through white-glove high and low touch execution, deep knowledge-driven content, corporate outreach and group educational events. We strive to Will continue to do and complete that effort, but it will have to be done in another house.

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The closure of Cowen Digital will lead to the closure of a second institutional crypto client unit within a week.

Venture capital conglomerate Digital Currency Group (DCG) has opted to shut down its flagship brokerage subsidiary TradeBlock, with the process set to begin on May 31, according to a May 25 report by Bloomberg.

The firm cited a “prolonged crypto winter” as well as a tough regulatory environment in the US Cointelegraph also reported in February that DCG could lose $1 billion in 2022 due to ill health stemming from the bankruptcy of crypto hedge fund Three Arrows Capital The loss occurred.

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