Investment bank TD Cowen closes crypto unit a year after opening

Just over a year after launching its crypto unit, US independent investment bank TD Cowen has announced the closure of Cowen Digital, although it has not given a clear reason why.

The multinational bank launched Cowen Digital in March 2022 to give institutional clients access to the crypto market through 16 crypto assets, including Bitcoin (BTC) and Ether (ETH).

At the time, the company also teased that it would launch additional services around futures, derivatives and decentralized finance. While it had also only hired executives for its European operations in December.

However, in a new email currently circulating online and seen by outlets such as Bloomberg News, Cowen Digital and its team of about 10 employees will close on June 1.

“Today is the last day for the team here at Cowen Digital,” the email read. It has not disclosed the reasons behind the closure.

The Cowen bank itself had been in turmoil over the past 12 months, after it was acquired by TD Bank Group for $1.3 billion in August 2022 and the deal closed in March this year.

Cointelegraph has reached out to Cowen (now known as TD Cowen) for comment and will update the article if the company responds.

The shutdown comes amid a number of crypto company collapses last year, in addition to US banking and regulatory woes in 2023.

Specifically, the email suggested that the Cowen Digital team wants to continue its work under a different organization.

“Our entire team strongly believes in the need for trusted counterparties who understand the needs of institutional investors – through high- and low-touch white-glove execution, deep knowledge-driven content, corporate access and educational group events. We will continue to try to live up to that commitment, but will have to do so in another house,” the email reads.

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

As reported by Bloomberg in a May 25 report, venture capital conglomerate Digital Currency Group (DCG) has opted to close its prime brokerage subsidiary TradeBlock, with the process set to begin May 31.

The company cited a “protracted crypto winter” along with a tough regulatory climate in the US. Cointelegraph also reported in February that DCG suffered a $1 billion loss in 2022 from the contagion following the bankruptcy of crypto hedge fund Three Arrows Capital.

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