Gemini

Read

<p class="is-style-lead">Digital Currency Group (DCG) is shutting down one of its subsidiaries offering trading services to institutional investors, with the venture capital conglomerate citing a tough regulatory environment along with the bear market as reasons for its action.  </p>



<p>DCG is set to sunset TradeBlock, a subsidiary focused on institutional investors and offering them trade execution, pricing, and prime brokerage services, by the end of May 2023.&nbsp;</p>



<p>According to a <a href="https://www.bloomberg.com/news/articles/2023-05-25/digital-currency-group-closes-tradeblock-institutional-platform" target="_blank" rel="noopener">statement</a> by a DCG spokesperson to Bloomberg, the decision to close down the subsidiary was taken due to the state of the broader economy, the prolonged crypto winter, and the challenging regulatory environment for digital assets in the US.</p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            You might also like:
        </span>

    
    
        <a href="https://crypto.news/dcg-subsidiary-luno-to-sack-35-of-its-employees/" class="cn-block-related-link__link">
            DCG subsidiary Luno to sack 35% of its employees        </a>

    
</div>


<p>TradeBlock was initially purchased by crypto news outlet CoinDesk – a DCG subsidiary – for an undisclosed amount in 2020. While some parts of TradeBlock were folded into CoinDesk&#8217;s operations, the others became a new entity known as the TradeBlock trading platform. Breanne Madigan, a former Goldman Sachs executive, headed the business. </p>



<p>Meanwhile, the latest move comes shortly after DCG <a href="https://www.theinformation.com/articles/genesis-parent-company-dcg-shutters-its-wealth-management-division?rc=8uivwi" target="_blank" rel="noopener">closed down</a> its wealth management arm, HQ Digital, in January 2023, for a similar reason. In 2022, the firm recorded a loss of over $1 billion, primarily due to collapsed crypto hedge fund Three Arrows Capital defaulting on its loan to cryptocurrency lender Genesis Global Trading, a DCG subsidiary. </p>



<p>As previously reported by <a href="https://crypto.news/digital-currency-groups-failure-to-pay-630m-raises-concerns/">crypto.news</a>, DCG failed to meet the deadline for loan repayment of approximately $630 million. Gemini said that it was working with Genesis and two groups of creditor committees to consider giving a forbearance to DCG to prevent the venture capital firm from defaulting. </p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            Read more:
        </span>

    
    
        <a href="https://crypto.news/gemini-enters-mediation-hopes-to-quickly-resolve-dcg-dispute/" class="cn-block-related-link__link">
            Gemini enters mediation, hopes to quickly resolve DCG dispute        </a>

    
</div>

DCG to cease operation of its institutional trading subsidiary

crypto.news

Otros artículos publicados el 26 may 2023

Turbo Pepe AI Club - TPAIC NFTs are LIVE! Mint yours today!

Dusk Network Invests $50,000 In Outdid To Spur Self-Sovereign Identification

Private: Get On-Chain Block Data Any Time With Parsiq

Lending Protocol RociFi Integrates with zkSync Era

Butane Network: A New Era of Blockchain Technology Fueled by AI and Investor Confidence

Veteran Crypto Analyst Forecasts Uprising Trends for New Meme Coins and Altcoins

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!