Cowen, another Wall Street bank that is moving towards cryptocurrencies – DiarioBitcoin

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Cowen, another Wall Street bank that is moving towards cryptocurrencies - DiarioBitcoin By Hannah Perez

The New York-based investment bank is opening a new cryptocurrency trading service for its institutional clients.


The interest of the titans of wall street by the burgeoning digital currency industry is becoming increasingly noticeable, amid a surge in the number of US banks launching services or products related to the new asset class.

Cowen Inc., a New York-based investment bank, has joined this growing list with the launch of a cryptocurrency service. As reported Bloombergthe financial institution presented this Wednesday Cowen Digital LLCa new division that will offer digital currency trading and custody services to institutional clients.

The split will allow high net worth clients to trade up to 16 cryptocurrencies, including Bitcoin, ethereum and Solariumaccording to a release cited by the media, and will be aimed at clients of hedge funds, mutual funds and family offices of Cowen.

Cowen offers trading and crypto custody

CowenDigital it also plans to offer cryptocurrency derivatives and futures trading, lending, and institutional access to decentralized finance (DeFi) platforms and tokens non-expendable (NFT). “We have a great advantage of being pioneers in this spacebank president Dan Charney said in an interview with Bloomberg. “This will be a significant split.”assured.

With about $16 billion in assets under management by the end of 2021, Cowen is a major investment bank in the United States. In the statement, the company committed to “stay at the forefront of innovation“, according to CEO Jeffrey M. Solomon; who added:

Through Cowen Digital, our clients now have access to the crypto and digital asset markets with our institutional quality and fully integrated end-to-end custody and execution capabilities.

Known for its success in exploring emerging industries, Cowen It started offering a crypto custody service last year and has been planning to expand its crypto products for a while now.

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Drew Forman, the director of the new unit, told CoinDesk that the launch had taken a year to complete. In May 2021, the bank invested $25 million in the cryptocurrency firm PolySign, co-founded by the chief technology officer of RipplDavid Schwartz. The subsidiary of that company, Standard Custody & Trust Co.., will now be in charge of custody operations.

In addition to cryptocurrency trading, Forman highlighted that one of the goals of the new unit is to be “mindset leaders” for customers.

Bridging the gap with traditional finance

The movement of Cowen It comes amid a larger trend among investment banks to dabble in the digital currency market. renowned entities such as Morgan Stanley, JPMorgan and citi are some of those that in recent months have announced strategies to try to bridge the gap between traditional capital markets and cryptocurrencies in the face of growing institutional demand.

Just a few days ago, the giant of wall street Goldman Sachs completed its first over-the-counter (OTC) trade of a cryptocurrency-linked instrument. The negotiation was carried out in association with digital-galaxythe cryptocurrency firm of Mike Novogratz. Goldman has also been offering its clients exposure to ethereum through funds from Galaxy.

Meanwhile, some previous reports suggest that the renowned institution is on the list of Wall Street banks that are actively exploring bank-backed loans. Bitcoin.

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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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