American investment bank TD Cowen closes crypto unit

• TD Cowen will be closing its crypto unit a year after launch.
• Cowen Digital’s closing marks the second institutional crypto client unit to close in a week.

American investment bank TD Cowen announced it would be closing 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 signaled it would launch new future-centric, derivatives and decentralized finance services. As recently as December 2022, it made executive hiring for its European business.

However, Cowen Digital will be shutting down, as per a May 31 Bloomberg report.

Cowen underwent a reorganization after being acquired by TD Bank Group for $1.3 billion in August 2022, with the deal finalizing in March 2023.

The second crypto unit closed in a week

The bank’s decision to close comes after a string of crypto company failures last year, as well as US banking and regulatory troubles in 2023.

Cowen Digital’s closing marks the second institutional crypto client unit to close in a week.

Recently Digital Currency Group (DCG) decided to liquidate the main brokerage business TradeBlock, with the process starting on May 31st.

The company highlighted the “prolonged crypto winter” as well as the difficult regulatory climate in the US

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In February, DCG reported a $1 billion loss for FY 2022 as a result of contagion caused by the collapse of crypto hedge firm Three Arrows Capital.

Cowen Digital’s comments on the news that Bloomberg saw read as follows,

“Our entire team believes strongly in the need for a trusted counterpart who understands the needs of institutional investors – through high and low touch execution, deep knowledge-based content, corporate access, and group educational events. We will continue to try and fulfill that endeavour, but will have to do so in a different home.”