Cowen Digital was launched last year in March.
The platform provided trading with 16 digital assets.
American investment bank TD Cowen has closed down its cryptocurrency unit, Cowen Digital, today (Thursday), just over a year after its launch, without providing any proper explanation.
Another Institutional Crypto Platform Is Closed
“Today will be the last day for the team here at Cowen Digital,” the investment bank stated in an email sent to its staff yesterday (Wednesday), according to Bloomberg News. Cowen Digital had roughly eleven employees.
Cowen Digital was launched last year in March to facilitate cryptocurrency market exposure to institutions. The platform offered 16 crypto assets at launch, including Bitcoin, Ethereum, and other popular names.
Additionally, the investment bank strengthened its cryptocurrency division by filling new positions as recently as last December. It even planned to expand its offerings with the addition of services around crypto futures, derivatives, and decentralized finance.
Moving under a Different Organization?
Though the leaked email did not provide any solid reason behind the shuttering of the crypto division, it hinted that the Cowen Digital team might join another organization to continue its work. However, the company did not furnish any details.
“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,” the email added.
TD Bank Group acquired Cowen Bank last August for $1.3 billion. The deal was completed this year in March. It is unclear if it was the new owner’s decision against continuing the cryptocurrency business.
The shuttering of the crypto division came when the industry was facing stress from the market slump and a few significant collapses last year. Additionally, the Digital Currency Group (DCG) shuttered its institutional crypto trading platform, TradeBlock, mentioning concerns about the broader economy and regulatory uncertainties in the United States.
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