- This platform is for institutional clients
- It will close operations on May 31
- Cause of tough market conditions
Digital Currency Group (DCG) will close its institutional trading platform TradeBlock on May 31 due to a tough market and tightening U.S. regulatory policies.
TradeBlock is the official trade execution, pricing and brokerage service for institutional investors. Barry Silbert’s company acquired the platform in 2020.
The reason for the closure, according to management, was macroeconomic conditions and a prolonged crypto-winter.
The complex digital asset management environment in the U.S. also plays an important role.
TradeBlock was led by Brynn Madigan. She previously worked at Goldman Sachs for 15 years.
And then she was Ripple’s vice president of global institutional markets.
The crypto giant DCG is now in a difficult situation. In May, they defaulted on $630 million of Genesis Global debt.
And before that, the company’s CFO Michael Cranes left.
Currently, creditors (DCG, Genesis Global and Gemini) are negotiating a restructuring of Genesis’ debts. DCG is also seeking options to refinance it.
The company’s business is worsened by the U.S. Securities and Exchange Commission (SEC). She accused DCG and its partners of selling unregistered securities.
We are talking about Earn program at Gemini cryptocurrency exchange, which, by the way, is the reason of Genesis Global debt.