American boutique investment bank Cowen Inc. by shutting down its crypto asset unit. It has become the latest financial institution to shun digital assets amidst a darkened regulatory environment.
“Today will be the last day for the team here at Cowen Digital,” Bank stated, according to a May 31 report a report By bloomberg.
In March, TD Bank Group, one of the largest banks in North America, acquired financial services company Cowen.
Cool banks on cryptocurrency
Cowen’s digital assets unit launched just over a year ago to enable institutional clients to invest in 16 crypto assets.
Coen’s team hinted that they could still offer crypto services but not under the umbrella of TD Bank. Mentioned Investors Email:
“Our entire team believes strongly in the need for reliable counterparties that understand the needs of institutional investors (…) We will continue to try and fulfill this endeavor, but we will have to do it in a different house,”
The Cowen Digital shutdown adds to a growing list of US financial firms backing away from Bitcoin and its brethren.
Other entities that have left the crypto space
In late May, it was reported that Digital Currency Group (DCG) announced the closure of its flagship brokerage, TradeBlock. The company blamed “the state of the broader economy and prolonged crypto winter, along with the difficult regulatory environment for digital assets in the US” for the decision.
On May 10th Potato encryption It reported that two of the world’s leading market makers have also withdrawn plans to trade cryptocurrencies.
The Jane Street Group said regulatory murky waters “made it difficult for the company to operate the business in a way that met internal standards.” Meanwhile, Jump Trading echoed the sentiment, saying it is abandoning the US markets to trade cryptocurrencies.
Several big players in the crypto industry, including Coinbase, Gemini, and Galaxy Digital, have already made moves abroad while maintaining a presence in the US.
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