Leading digital asset group Digital Currency Group (DCG) has announced the closure of its TradeBlock subsidiary citing the difficult regulatory environment for digital assets in the United States and the prolonged crypto winter.
The platform, which provides prime deal execution, pricing and brokerage services to institutional investors, will cease operations as of May 31, 2023, according to Bloomberg. a report.
DCG closes TradeBlock
DCG’s move comes as the company negotiates with creditors over its bankrupt lending business. The TradeBlock shutdown is expected to have significant impacts on the cryptocurrency market, particularly for institutional investors who rely on the platform for trading and pricing services.
CoinDesk Inc. has acquired , a cryptocurrency media and events company also controlled by DCG, acquired TradeBlock in 2020. As part of the acquisition, the indexing business was consolidated into CoinDesk’s own operations, while the remaining operations were spun off as TradeBlock’s trading platform.
In a statement to Bloomberg, a DCG spokesperson claimed:
Due to the state of the broader economy and the prolonged crypto winter, along with the challenging regulatory environment for digital assets in the US, we have made the decision to exit the institutional trading platform side of the business.
The decision to close TradeBlock was not unexpected, as DCG had previously indicated its intention to focus on its core business. Although, this move will allow the company to standardize its operations and streamline its offering to better serve its customers.
What is TradeBlock?
TradeBlock was founded in 2013 as a cryptocurrency trading platform that caters to institutional investors. The platform allowed users to execute trades, access market data and analytics, and manage their digital asset portfolios. TradeBlock has also provided a range of services including a cryptocurrency index, an order management system, and a set of APIs for developers.
DCG’s acquisition of TradeBlock presented several benefits to the company. First, it allowed DCG to expand its offering to include institutional level trading services and prime brokerage of digital assets. The move was in line with DCG’s focus on providing infrastructure and services to support the growth of the cryptocurrency industry.
Secondly, the acquisition of TradeBlock by DCG gave the company access to a team of highly skilled developers and industry experts who possess deep knowledge of the digital asset space. However, as mentioned earlier, the decision has been made to shut down the trading arm of DCG and TradeBlock will cease operations on May 31, 2023.
Featured image from Unsplash, chart from TradingView.com