Digital Currency Group (DCG) is shutting down its institutional trading platform TradeBlock starting from May 31. The company cited the challenging regulatory environment and the prolonged “crypto winter” as reasons for sunset the platform. TradeBlock provides trading services to institutional investors in the cryptocurrency space. The decision comes as US regulatory bodies tighten their grip on the digital asset market, with increased scrutiny on initial coin offerings (ICOs) and tighter controls on cryptocurrency exchanges.
This article originally appeared on www.coindesk.com
Digital Currency Group (DCG) has announced the closing of TradeBlock, its institutional trading platform. TradeBlock has been providing blockchain data, analytics and institutional trading tools for bitcoin since 2015.
As per the announcement, DCG will shut down TradeBlock’s trading operations and its subsidiary company, Genesis, will take over its client base and continue to serve them. Genesis is a trading branch of DCG.
An official statement from DCG said, “Over the past five years, TradeBlock has helped institutions trade cryptocurrencies, explored the potential of blockchain technology, and built the blockchain data and analytics infrastructure required for current and future digital assets. We are proud of the TradeBlock team and the work they have done to advance the ecosystem, and we are excited about the potential of Genesis to continue to support the digital asset sector with unparalleled service and infrastructure.”
The statement did not delve into the reasons behind the TradeBlock closure. However, some rumors are circulating that a recent internal audit revealed that the platform was underperforming financially and was not producing the expected returns.
TradeBlock was initially created as a data analytics company before morphing into a trading platform, focusing majorly on institutional players. The platform dabbles in various services, including research on trends, market data, block explorer, and indexes.
Genesis, on the other hand, is a lending and trading platform for institutional clients. The Genesis team is expected to ensure TradeBlock’s institutional clients have an easy transition to its platform and experience no service disruptions.
This is not the first time DCG has shut down subsidiary entities. Previously, they announced the shutdown of Grayscale XRP Trust for trading. This quick closure followed the SEC charge against Ripple Labs, which led to the de-listing of XRP from several exchanges.
The closure of TradeBlock may have been inevitable, given the increased competition from established players like Bakkt and emerging firms such as Binance. The digital asset industry is growing rapidly and requires firms to remain innovative to survive in the competitive market. Genesis will continue to trade and provide lending services even as the digital asset industry continues to require unique and innovative solutions.
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