Cowen Digital Shutting Down After Getting Acquired by TD Bank
According to a report from Wednesday, the investment bank Cowen is shutting down its digital assets-focused branch on May 31st. The decision comes just under three months after Cowen was acquired by TD Bank.
Cowen Investment Bank Shutting Down Its Digital Assets Division
A report from May 31st indicated that the investment bank Cowen is shutting down its digital assets-focused branch—Cowen Digital. Cowen Digital was launched in March 2023 as a platform aimed at offering BTC, ETH, SOL, and 13 other cryptocurrencies to institutional clients.
Reportedly, Wednesday, May 31st, is the last day that Cowen Digital will be operating. The shutdown allegedly affects at least 10 employees and an intern. The announcement comes just under three months after TD Bank finalized its acquisition of Cowen.
The move comes after more than a year of hardship and setbacks that severy impacted the wider cryptocurrency industry. Additionally, digital assets found themselves under increased regulatory pressure in the United States since the start of 2023.
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Traditional Firms Still Interested in Digital Assets Despite “Crypto Winter”
The “crypto winter” has had a profound effect on the cryptocurrency industry significantly diminishing its total market cap and seeing multiple once-major companies file for bankruptcy. Additionally, its lingering effects are still felt with several firms still citing the damage they sustained through its duration as primary reasons for various tough choices.
Nansen, for example, announced it is reducing its workforce by a third earlier this week and cited the “crypto winter” as one of the main two reasons. Still. despite the setbacks, most major traditional companies from various industries still appear very interested in digital assets.
Additionally, while a “debanking” of the cryptocurrency industry appeared as one of the effects of the “crypto winter” following the closings of Silvergate and Signature banks, the European banking industry now appears ready to fill in the gap and is reportedly actively seeking digital assets compliance specialists.
Editorial note (June 1st, 2023, 11:24 AM EST): The article was edited for clarity.
Why did TD decide to close Cowen Digital Assets? Tell us what you think in the comments below.