Bitrabo Editorial
TD Cowen, an American investment bank, has reportedly shut down its crypto asset unit Cowen Digital just a year after launch. The closure will take effect on June 1, which will be the last day for the unit’s team. There is no explanation for this decision yet.
Cowen Digital Team Remains Committed to Crypto Service
Although Cowen Digital has closed down, the team has confirmed its steadfastness towards crypto services and digital assets, indicating they may join another organization. In an email statement, the team wrote:
“Our entire team believes strongly in 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 trying to fulfill that endeavor, but will have to do so in a different home.”
Cowen Bank was acquired by TD Bank Group in 2022 for $1.3 billion. However, it remains unclear if the acquisition deal is the reason for the closure of Cowen Digital’s crypto business.
Impact of Bearish Crypto Market on Institutional Businesses
The current bearish trend in most crypto assets is affecting the crypto industry. Ongoing legal battles and the banking crisis have added to the challenge, leading to several firms facing insolvency. Some major digital asset-related companies have already collapsed.
In another report, Digital Currency Group (DCG), a venture capital conglomerate, is closing its brokerage subsidiary TradeBlock on May 31. The decision was influenced by strict regulatory stances and unfavorable digital asset market conditions in the United States.
Meanwhile, the majority of the major digital assets are currently trading in the red at the time of writing. The cumulative crypto market cap is hovering at $1.13 trillion after dropping by 0.28% over the past 24 hours.
Featured image from Pixabay and chart from TradingView