Cowen, a major American independent investment bank, has officially launched a dedicated division for cryptocurrencies and digital assets.
Cowen’s new business, dubbed Cowen Digital, is designed to provide institutional investors with a full range of transaction execution and custody services for cryptocurrencies such as Bitcoin (BTC) and other digital assets, the firm announced Wednesday.
To launch the new crypto division, Cowan partnered with PolySign’s cold storage-focused subsidiary Standard Custody and Trust Company. The bank is also a client of Digital Prime Technologies, a brokerage solutions firm that provides compliance services, according to the announcement.
Cowan initially announced plans to transition to cryptocurrency custody in May 2021, partnering with the Standard Custody and Trust Company at the time. The company also invested $25 million in Standard’s parent company, PolySign, co-founded by Ripple’s CTO David Schwartz.
According to the announcement, Cowen has been working on building the infrastructure and systems needed to launch Cowen Digital for the past 15 months.
As of the end of 2021, with approximately $16 billion in assets under management, Cowen is a major investment bank in the United States. The company strives to outperform its customers by “remaining at the forefront of innovation,” said Cowen CEO Jeffrey M. Solomon, adding:
“With Cowen Digital, our clients now have access to the crypto and digital asset markets through our institutional quality and fully integrated end-to-end execution and storage capabilities.”
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Cowen Digital’s future features will also include derivatives and futures, financial solutions, and institutional tools for managing decentralized finance and non-fungible tokens, the announcement notes.
The news comes shortly after U.S. investment bank Goldman Sachs carried out its first OTC cryptocurrency options trading in partnership with digital asset investment firm Galaxy Digital. Earlier in February, JPMorgan Chase launched a virtual living room in the Decentraland metaverse.