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- No specific reasons were disclosed by the investment bank
- The international bank established Cowen Digital just last year.
Cowen Digital, the cryptocurrency branch of the American independent investment bank TD Cowen, has been closed just over a year after its launch, with the reasons for this decision remaining undisclosed. In March 2022, the international bank launched Cowen Digital to offer institutional clients access to the cryptocurrency market through a selection of 16 different cryptocurrencies.
At that time, the company suggested that it would also provide services related to futures, derivatives, and decentralized finance. Furthermore, as recently as December, it had expanded its team, which consists of around 10 members in Europe.
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However, as reported by Bloomberg News, Cowen Digital will cease operations as of June 1. An email stated, “Today will be the last day for the team here at Cowen Digital.” The email did not clarify the reasons behind the division’s closure.
This shutdown aligns with a series of failures among crypto firms in 2022 and the financial and regulatory challenges facing the United States in 2023. The communication suggested that the Cowen Digital team might be exploring options to continue operating independently.
The email read:
“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.”
The crypto institutional client unit at Cowen Digital marks the second closure in the past week. Earlier on May 25, it was reported that Digital Currency Group (DCG), a venture capital firm, has opted to shut down its primary brokerage subsidiary TradeBlock, effective May 31.
