Cowen Shuts Down Crypto Digital Asset Unit Amid Industry Cuts In 2023

Key Points:

• On May 31, Cowen, an investment bank, announced the closing of its digital asset section.
• The digital asset unit was established in March 2022 in order to attract institutional customers.
• The debut of Cowen Digital was part of a larger wave aimed at attracting institutional involvement.

According to Bloomberg, Cowen Digital, the digital asset subsidiary formed last year by investment bank Cowen, is shutting down.

Cowen offers investment banking, research, sales, and trading. Its digital asset segment, created in 2022, was a bold step that included 16 digital assets among the assets supplied to its consumers, including Bitcoin, Ethereum, and Solana.

Cowen Inc. was acquired by TD Bank Group, one of North America’s major banks, in March 2023, prompting the closure. According to an email shared with Bloomberg, the bank’s digital assets unit included at least ten workers and one intern.

“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 stated.

Cowen Digital applies the company’s established competence in conventional finance to the digital environment. It helps and advises institutional customers as they explore the growth of blockchain and digital assets by using its expertise in Markets, Research, Prime Brokerage, Investment Banking, and Investment Management.

Cowen Digital enables institutional customers to protect, access, and exploit cryptocurrencies in their portfolios in real-time. Digital assets may be traded via a single partner in the same way that any other asset type can. Our strategic relationship with Standard Custody and Trust Company LLC, a licensed, insured NYDFS-regulated custodian, provides custody options.

Previously, the digital asset division announced the appointment of Taylor Cable as Managing Director of its expansion strategy.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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