TD Cowen Winds Down Crypto Division: Details
- The digital asset arm of multinational investment bank TD Cowen, Cowen Digital, is shutting down.
- Cowen Digital was created in March 2022 to offer the trading of crypto coins like Bitcoin and Ether.
- The digital asset arm of the investment bank hired employees as recently as December 2022.
- The bank itself has seen various ups and downs, and it was acquired by TD Bank Group for $1.3 billion.
- In an email, the firm hinted that its team might soon start working under a different organization.
Popular US-based investment bank TD Cowen seems to have given up on its ideas of expanding operations in the crypto space. The firm, which was founded in 1918, seems to have been affected by the regulatory uncertainty surrounding the crypto industry in the United States along with the recent decline in the prices of cryptocurrencies following the collapse of multiple crypto companies. The firm has announced that it will be winding down its crypto division, known as Cowen Digital, but hasn’t provided a reason for the same.
It is crucial to note here that the creation of Cowen Digital was announced in March 2022 and was designed to offer full-service trade execution and custody for cryptocurrencies like Bitcoin (BTC), the world’s largest crypto asset, along with other digital assets. The division was launched in collaboration with PolySign’s cold storage-focused subsidiary, Standard Custody and Trust Company.
More importantly, at the time of the announcement, TD Cowen also hinted that it would debut additional services revolving around futures, derivatives, and decentralized finance.
Also, in December, the digital asset arm of the investment bank hired Taylor S. Cable as Managing Director of Cowen Digital Europe, the European arm of the digital asset business that is based in London but is focused on expansion in global markets. Cable had previously held institutional positions at Blockchain.com, including COO of BCAM (Blockchain.com Asset Management) and Head of Institutional Client Trading.
However, as per a recent turn of events, the digital assets arm of TD Cowen has sent emails, which are in circulation online and seen by Bloomberg, stating that “today will be the last day for the team here at Cowen Digital.” The email did not explain why the firm had decided to do so or what the next steps would be.
Additionally, the bank itself has seen various ups and downs this year before being acquired by TD Bank Group for $1.3 billion in August 2022. The deal was officially closed in March this year, which resulted in the creation of an integrated North American dealer with the goal of significantly advancing its growth strategy in the region via the addition of Cowen’s US equities sales trading, and execution capabilities, as well as research capabilities.
It is important to mention here that the email also noted that the Cowen Digital team might soon start working under a different organization, but the complete details were not revealed.
“Our entire team believes strongly in the need for trusted counterparties who understand the needs of institutional investors through white-glove high and low touch execution, deep knowledge-driven content, corporate access, and group educational events. We will continue to try and fulfill that endeavor, but we will have to do so in a different home,” the email stated.
Banking firms in the US have faced a lot of heat recently following the collapse of some of the major institutions like Silicon Valley Bank, Signature Bank, and First Republic Bank. On the other hand, the banks in the United Kingdom are also cutting ties with crypto firms because it is widely believed that the collapse of major US banks was related to crypto assets.