Continuing talks with bankrupt lenders, digital asset conglomerate Digital Currency Group is closing its subsidiary TradeBlock, which provides transaction processing, pricing and prime brokerage services to institutional investors.
managed by DCG cryptocurrency Media and events company CoinDesk acquired TradeBlock in 2020 in an undisclosed transaction.
DCG Spokesperson Mentions General Economic Situation and Cryptocurrency Winter
“Due to the general economic situation and the prolonged crypto winter, as well as the difficult regulatory environment for digital assets in the United States, we have made the decision to shut down the institutional trading system,” a DCG spokesperson said. he said in a statement. The shutdown will take effect from May 31.
DCG, led by Barry Silbert, is facing challenges posed by the sudden collapse of one of the world’s largest exchanges, FTX, at the end of 2022. Genesis Global Holdco, which provides returns to lenders of their currencies, halted withdrawals in November and file for bankruptcy in January.
TradeBlock was led by Breanne Madigan, who spent 15 years at Goldman Sachs, including as head of institutional wealth services, and is also vice president of global institutional markets at Ripple.
Most recently, DCG defaulted on $630 million in Genesis Global debt.
*Not investment advice.