American independent investment bank TD Cowen has closed down its crypto division, just one year after its launch.
The bank launched Cowen Digital last March, providing clients exposure to the crypto market via crypto assets, such as Bitcoin.
While no reason has been provided as to why Cowen Digital has been shut down, an email has been circulated saying: “Today will be the last day for the team here at Cowen Digital.”
The email reveals that the current 10 employees of Cowen Digital will be moved to a different department within the organisation.
“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,” it concluded.
Cowen Digital is the second institutional crypto client unit to shut down this week with venture capital conglomerate Digital Currency Group (DCG) closing its subsidiary TradeBlock.
DCG cited a “prolonged crypto winter” along with a tough regulatory climate in the US that saw it suffer losses of $1 billion in 2022 due to the contagion stemming from the bankruptcy of crypto hedge fund Three Arrows Capital.
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