- TD Cowen is closing its crypto unit a year after its launch.
- Cowen Digital’s closing marks the second institutional crypto client unit to close within a week.
US investment bank TD Cowen has announced that it will close its crypto unit, Cowen Digital, a year after its launch.
The bank launched Cowen Digital in March 2022 to provide institutional clients with exposure to the crypto market through 16 crypto assets, including Bitcoin and Ethereum.
At the time, the company also indicated that it could launch new services around futures, derivatives and decentralized finance. As of December 2022, it has still hired executives for its European operations.
However, Cowen Digital will close on May 31 Bloomberg report.
Cowen underwent a reorganization after his acquisition by TD Bank Group for $1.3 billion in August 2022, with the deal closing in March 2023.
Second crypto unit closes in a week
The bank’s decision to close comes on the heels of a string of crypto firm bankruptcies last year, as well as US banking and regulatory woes in 2023.
Cowen Digital’s closing marks the second institutional crypto client unit to close within a week.
Only recently did the Digital Currency Group (DCG) decided to liquidate its main brokerage firm TradeBlock, with the process beginning May 31.
The company highlighted a “prolonged crypto winter” and a tough regulatory environment in the US
In February, DCG reported a $1 billion loss for FY 2022 due to the contagion caused by the collapse of crypto hedge firm Three Arrows Capital.
Cowen Digital’s commentary on the news as seen by Bloomberg reads:
“Our entire team strongly believes in the need for trusted counterparties who understand the needs of institutional investors – through high- and low-touch white-glove execution, deep knowledge-driven content, corporate access and educational group events. We will continue to try to live up to that goal, but will have to do it in another house.”