Investment bank TD Cowen shuts crypto unit a year after opening

Simply over a 12 months after launching its crypto unit, American impartial funding financial institution TD Cowen has introduced the shutdown of Cowen Digital, although it has not offered a transparent purpose 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 providers revolving round futures, derivatives and decentralized finance. Whereas it had additionally made govt hires for its European operations as lately as December.

Nevertheless, in a brand new electronic mail at present circulating on-line and seen by retailers comparable to Bloomberg Information, Cowen Digital and its group of roughly 10 workers, will shut down as of June 1.

“Right this moment 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 completed in March this 12 months.

TD Financial institution Group acquisition announcement. Supply: TD Financial institution Group

Cointelegraph has reached out to Cowen for remark (now often known as TD Cowen) and can replace the article if the corporate responds.

The closure comes amid quite a few crypto firm collapses final 12 months, alongside the  U.S. banking and regulatory woes in 2023.

The Cowen Digital web site at present reveals a 404 error. Supply: TD Cowen

Notably, the e-mail advised that the Cowen Digital group is seeking to keep it up its work underneath a unique group.

“Our complete group believes strongly within the want for trusted counterparties who perceive the wants of institutional traders – by means of white-glove excessive and low contact execution, deep knowledge-driven content material, company entry and group instructional occasions. We’ll proceed to try to fulfill that endeavor, however can have to take action in a unique dwelling,” 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 house of per week.

As reported by Bloomberg on Might 25 report, Enterprise capital conglomerate Digital Currency 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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