Investment Bank TD Cowen Shuts Crypto Unit a Year After Opening

Just over a year after launching its crypto unit, American independent investment bank TD Cowen has announced the shutdown of Cowen Digital, though it has not provided a clear reason why.

The multinational bank launched Cowen Digital in March 2022 to provide institutional clients exposure to the crypto market via 16 crypto assets, including Bitcoin and Ether.

At the time, the firm also teased that it would launch additional services revolving around futures, derivatives and decentralized finance. It had also made executive hires for its European operations as recently as December and had a team of roughly 10 employees.

However, according to a new email currently circulating online that's been seen by outlets such as Bloomberg News, Cowen Digital will close down as of June 1.

"Today will be the last day for the team here at Cowen Digital," the email read. It did not disclose the reasons behind the closure.

The Cowen bank itself had undergone a shake-up after being acquired by TD Bank Group for $1.3 billion in August 2022 in a deal completed in March this year.

Notably, the email suggested that the Cowen Digital team is looking to carry on its work under a different organization.

The closure of Cowen Digital marks the second institutional crypto client unit to shut down in the space of a week.

(Source: CoinTelegraph)