Investment bank Cowen closes crypto-asset department after takeover: report

Investment bank Cowen closes crypto-asset department after takeover: report

The American boutique investment bank Cowen Inc. closes its crypto-asset unit. It is the latest financial institution that shy away from digital assets in a darkening regulatory environment.

"Today the last day for the team will be digital here at Cowen," said the bank, according to a report by Bloomberg on May 31st.

In March, the financial service company Cowen was taken over by TD Bank Group, one of the largest banks in North America.

banks cool down from crypto

cowens digital asset unit was founded a little more than a year ago to enable institutional customers to invest in 16 crypto-assets.

The cowen team indicated that it may continue to offer cryptodic services, but not under the roof of the TD Bank. In the email to investors, it was said:

"Our entire team is firmly convinced that trustworthy counterparties are needed who understand the needs of institutional investors [...] We will continue to try to achieve this goal, but have to do this in another at home."

The closure of Cowen Digital complements the growing list of American financial companies that turn away from Bitcoin and its brothers.

other companies that have left the crypto room

At the end of May it was reported that the Digital Currency Group (DCG) announced the closure of its Prime Brokerage subsidiary Tradlock. The company blamed the "state of the overall economy and the ongoing crypto winter as well as the challenging regulatory environment for digital assets in the USA.

on May 10th Kryptoctok potato reported that two of the world's leading market-making companies have also stopped their crypto trading plans.

Jane Street Group said that the unclear regulatory framework "made it difficult for the company to run the business in a way that corresponds to internal standards". Meanwhile, Jump Trading repeated the opinion that it would give up the US markets in favor of the crypto trade.

Several larger players in the crypto industry, including Coinbase, Gemini and Galaxy Digital, have already taken steps abroad and at the same time maintained a presence in the USA. It is likely that many more will follow because Uncle Sam's war escalated against crypto.

.