Thursday, September 29, 2022
HomeBusinessUS investment bank Cowen launches separate unit for crypto

US investment bank Cowen launches separate unit for crypto

Called Cowen Digital, the unit will offer cryptocurrency trading to institutional investors. Along with this, custody solutions will also be provided through partnership with other firms.
Many firms are preparing to take advantage of the growing interest in the crypto segment. In this series, US investment bank Cowen has created a cryptocurrency and digital assets division. Called Cowen Digital, the unit will offer cryptocurrency trading to institutional investors. Along with this, custody solutions will also be provided through partnership with other firms. 

Announcing this, Cowen said that the bank had been trading crypto on behalf of clients for several months before launching the new division. The bank said the new division will give institutional clients secure access to the digital asset ecosystem. The services of this unit can include derivatives and futures, financing solutions as well as NFT and Decentralized Finance (DeFi). Cowen CEO Jeffrey M. Solomon made a statement “With Cowen Digital, our clients will get institutional quality access to the crypto and digital asset markets,” it said in a statement. 

Cowen had approximately $15.8 billion in assets under management (approximately Rs 1,20,380 crore) at the end of last year. Drew Forman, who served as Managing Director and Head of Equity Derivatives for Cowen, will lead the new unit. Many US companies are launching services in this segment to take advantage of the rapidly growing market for digital assets such as Bitcoin and Ether. Firms belonging to this segment have seen a boom in business in recent years, with retail investors becoming increasingly interested in cryptocurrencies. 

Regulators fear that increasing popularity of crypto assets could pose risks to the financial system. The value of cryptocurrencies had crossed $3 trillion (about Rs 2,29,39,400 crore) last year. According to research from the University of Chicago , about 14 percent of Americans invested in digital assets last year. Some crypto-related firms have tried to increase awareness of this segment through marketing campaigns featuring celebrities and athletes. US President Joe Biden has signed an executive order on digital assets. This includes creating a regulatory authority to oversee crypto. 

- Advertisement -
MOBILE

Auto

Two Wheeler

BUSINESS AND FINANCE

Digit News