Summary
Digital Currency Group (DCG) is shutting down trade execution and prime brokerage subsidiary TradeBlock due to concerns about the broader economy and regulatory uncertainties in the US. The closure process will begin on 31 May. DCG, which owns crypto-media outlet CoinDesk, recently shuttered its wealth management division and faced other troubles, including losses exceeding $1bn in 2022 due to exposure to crypto hedge fund Three Arrows Capital. DCG’s crypto-lending arm also filed for bankruptcy in January. During the bankruptcy, the DCG subsidiary Genesis Global Holdco agreed to pay off a $765.9m loan to Winklevoss-twins’ crypto exchange Gemini but missed a $630m payment earlier this month.
Digital Currency Group, the parent company of leading cryptocurrency investment firm Grayscale Investments, has announced the shutdown of its prime brokerage platform TradeBlock. The New York-based firm is set to cease operations on July 31, 2021, according to a statement by Digital Currency Group.
TradeBlock was launched in 2013 and provided an institutional trading platform and data analytics for professional traders in the crypto industry. The platform was popular with both buy-side and sell-side institutions who used it for market insights and pricing data. In 2019, Digital Currency Group acquired TradeBlock and integrated it into its portfolio of companies in the crypto industry.
The shutdown of TradeBlock comes after Digital Currency Group completed a strategic review of the company’s offerings. The review revealed that TradeBlock’s services were largely overlapping with those of Grayscale Investments and other subsidiaries of Digital Currency Group. The decision to shut down TradeBlock was made to streamline the company’s operations and better serve its clients.
“Over the last several months, Digital Currency Group has conducted a comprehensive review of its subsidiary, TradeBlock,” the statement read. “As a result of this review, we have decided to wind down TradeBlock’s operations. Digital Currency Group remains committed to its mission of accelerating the adoption of digital currency and blockchain technology and will continue to invest in companies that further this mission.”
TradeBlock’s customers have been notified of the shutdown and have been advised to transfer their accounts and assets to other platforms before the end of July. The termination of TradeBlock’s operations will not have an impact on the holdings of Grayscale Bitcoin Trust, which is managed by Grayscale Investments, a subsidiary of Digital Currency Group.
The closure of TradeBlock is the latest example of the consolidation taking place in the crypto industry. As the market matures, companies are looking to streamline their operations and cut costs. The move also reflects the changing needs of institutional investors, who demand a more seamless and integrated trading experience.
Original Source: www.financemagnates.com
