- No specific reasons were disclosed by the investment bank
- The international bank established Cowen Digital just last year.
Cowen Digital, the cryptocurrency division of American independent investment bank TD Cowen, has been shut down a little over a year after its establishment, for reasons that have not been made known. In March 2022, the international bank established Cowen Digital to provide institutional customers access to the cryptocurrency market through 16 different cryptocurrencies.
The company hinted at the time that it will also include services related to futures, derivatives, and decentralized finance. In addition, as recently as December, it has added personnel to its approximately 10-person European team.
String of Crypto Firms Shut Down
However, as reported by Bloomberg News, Cowen Digital will be shutting operations as of June 1. The email said, “Today will be the last day for the team here at Cowen Digital.” The email did not explain why the division was closing.
The shutdown coincides with a string of crypto firm failures in 2022 and the financial and regulatory problems facing the United States in 2023. The communication raised the eyebrow that the Cowen Digital team could be trying 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 is the second to close in the last week. Earlier on May 25, it was reported that Digital Currency Group (DCG), a venture capital firm, has decided to shut down its primary brokerage subsidiary TradeBlock, effective May 31.
