Cowen Digital’s cryptocurrency division lasted just over a year and provided institutional clients with investment services for 16 crypto-assets. The bank did not disclose the real reasons for the sudden closure of the unit.<br
Nevertheless, according to media reports citing sources close to Cowen, the announcement came immediately after the $1.3 billion acquisition of Cowen Bank by TD Bank Group, which was concluded in March of this year. Apparently, the new administration is not happy with the presence of a cryptocurrency unit in the company’s financial structure;
Cowen Digital’s sudden closure may also have been influenced by the series of problems faced by Silvergate and Signature Bank, as well as the growing regulatory problems with digital assets in the U.S. banking sector.
Earlier, Temasek, Singapore’s state-owned investment fund, said that the team of analysts that recommended investing in cryptocurrency exchange FTX would lose bonuses due to the collapse of the site.