The American investment bank Cowen announced the closure of the Cowen Digital crypto division a year after the launch. It is reported by Bloomberg.
“Today will be the last day for the team at Cowen Digital. […] We will continue to try to realize this aspiration, but we will have to do it elsewhere, ”the email to customers and employees of the company says.
Cowen launched a digital asset-focused division in March 2022. Operations with 16 assets were available to clients of the service, including Bitcoin, Ethereum, Solana, Aave and USD Coin.
In the future, the bank planned to add support for crypto derivatives, DeFi and NFT.
Cowen became the second financial institution that had to close its cryptocurrency project in 2023. Earlier, the trading platform for institutional traders TradeBlock, which is part of the Digital Currency Group holding, announced the termination of its activities.
The company cited the poor state of the economy and the uncertain regulatory environment for digital assets in the US.
Recall that in May 2021, Cowen invested $25 million in PolySign, the parent company of Standard Custody. The latter received a cryptocurrency trust license from the New York State Department of Financial Services.
In the same month, the bank launched a $46 million fund to invest in the crypto industry.
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