Just a year after launching its crypto unit, American independent investment bank TD Cowen has announced the closure of Cowen Digital, although it has not given a clear reason.
The multinational bank launched Cowen Digital in March 2022 to provide institutional clients access to the crypto market through 16 crypto assets including bitcoin (BTC) and ether (ETH).
At the time, the company also teased that it would launch additional services around futures, derivatives, and decentralized finance. While it only hired executives for its European operations in December.
However, a new email currently circulating online and viewed by outlets such as Bloomberg News, Cowen Digital and its team of about 10 employees suggests that it will be shutting down on June 1.
“Today is the last day for the team at Cowen Digital,” the email read. The reasons for the closure have not been disclosed.
Cowen Bank has been in turmoil for the past 12 months after it was acquired by TD Bank Group for $1.3 billion in August 2022 and the deal closed in March this year.
Cointelegraph has reached out to Cowen (now known as TD Cowen) for comment and will update the article if the company responds.
The shutdown comes amid several crypto company collapses in the past year, in addition to the US banking and regulatory crisis in 2023.
Specifically, the email suggested that the Cowen Digital team wanted to continue its work under a separate organization.
“Our entire team strongly believes in the need for trusted counterparties that understand the needs of institutional investors – through high and low-touch white-glove execution, deep knowledge-driven content, corporate outreach and educational group events. We will continue to try to live up to that commitment, but it will have to be done in another home.”
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The closing of Cowen Digital marks the second institutional crypto client entity to be closed within a week.
As Bloomberg reported on May 25, venture capital group Digital Currency Group (DCG) has opted to shut down its flagship brokerage subsidiary TradeBlock, with the process set to begin on May 31.
The company cited a “long crypto winter” in the US along with a tough regulatory environment. Cointelegraph also reported in February that DCG faces a $1 billion loss from contagion in 2022 following the bankruptcy of crypto hedge fund Three Arrows Capital.
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