The cryptocurrency arm of Cowen Digital lasted just over a year and provided services to institutional clients in investing in 16 cryptoassets. The bank does not disclose the real reasons for the sudden closure of the unit.
However, according to media reports citing sources close to Cowen, this statement followed immediately after the closing of the deal to acquire Cowen Bank by TD Bank for $1.3 billion, which was concluded in March this year. Obviously, the new administration is not happy with the presence of a cryptocurrency division in the financial structure of the company.
The sudden closure of Cowen Digital may also have been influenced by a series of issues faced by Silvergate and Signature Bank, as well as growing digital asset regulation issues in the US banking sector.
Earlier, Temasek, the state investment fund of Singapore, announced that the team of analysts who recommended investments in the FTX cryptocurrency exchange will lose premiums due to the collapse of the site.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.