Simply over a yr after launching its crypto unit, American unbiased funding financial institution TD Cowen has introduced the shutdown of Cowen Digital, although it has not supplied a transparent cause why.
The multinational financial institution launched Cowen Digital in March 2022 to offer institutional purchasers publicity to the crypto market through 16 crypto property together with Bitcoin (BTC) and Ether (ETH).
On the time, the agency additionally teased that it might launch extra companies revolving round futures, derivatives and decentralized finance. Whereas it had additionally made government hires for its European operations as not too long ago as December.
Nonetheless, in a brand new e mail presently circulating on-line and seen by shops reminiscent of Bloomberg Information, Cowen Digital and its group of roughly 10 workers, will shut down as of June 1.
“As we speak would be the final day for the group right here at Cowen Digital,” the e-mail learn. It didn’t disclose the explanations behind the closure.
The Cowen financial institution itself had undergone a shake-up over the past 12 months, after it was acquired by TD Financial institution Group for $1.3 billion in August 2022, with the deal being accomplished in March this yr.
Cointelegraph has reached out to Cowen for remark (now generally known as TD Cowen) and can replace the article if the corporate responds.
The closure comes amid a variety of crypto firm collapses final yr, alongside the U.S. banking and regulatory woes in 2023.
Notably, the e-mail steered that the Cowen Digital group is seeking to keep on its work beneath a distinct group.
“Our complete group believes strongly within the want for trusted counterparties who perceive the wants of institutional traders – by way of white-glove excessive and low contact execution, deep knowledge-driven content material, company entry and group instructional occasions. We’ll proceed to attempt to fulfill that endeavor, however may have to take action in a distinct house,” the e-mail reads.
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The closure of Cowen Digital marks the second institutional crypto shopper unit to close down within the area of every week.
As reported by Bloomberg on Might 25 report, Enterprise capital conglomerate Digital Foreign money Group (DCG) has opted to shut its prime brokerage subsidiary TradeBlock, with the method beginning as of Might 31.
The agency cited a “extended crypto winter” together with a troublesome regulatory local weather within the U.S. Cointelegraph additionally reported in February that DCG suffered losses of $1 billion in 2022 because of the contagion stemming from the chapter of crypto hedge fund Three Arrows Capital.
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