By
Tolu Ajiboye
September 29th, 2020
Cowen listed more benefits of the new subsidiary to institutional investors. The inventors will enjoy post-trade reporting and operational and capital efficiencies.
Investment banking company Cowen (NASDAQ: COWN) unveiled the division of its digital assets, Cowen Digital LLC, on the 23rd of March. The company launched the new digital assets division in response to the rising interests and demand from crypto-native firms. Additionally, the need also came from multi-strategy hedge funds and asset allocators. In the announcement, Cowen said its new division, which is based in Stamford, Connecticut, “offers full-service trade execution and custody solutions.” The company added that the Cowen Digital platform provides secure and compliant access to the digital space to institutional clients. The strategic partnership between Cowen and Polysign’s Standard Custody & Trust helps the company provide custody solutions.
Cowen has been working on building its new division for the past 15 months. The company was dedicated to developing the infrastructure and systems needed to launch Cowen Digital.
Despite its efforts, the investment company’s stock has declined over 20% over the past year, losing 26.37% since the year began. In the last three months, the stock has plunged 27% and lost 8.22% over the past month. Also, the investment banking company has lost nearly 2% in the last five days.
Cowen Unveils Digital Assets Division
As Cowen launched the division of its digital assets, institutional investors will be able to access its aggregated liquidity via a reliable counterparty. Institutional investors will also use Cowen’s proprietary algorithms through high-touch or low-touch trading. Cowen listed more benefits of the new subsidiary to institutional investors. The inventors will enjoy post-trade reporting and operational and capital efficiencies. The new unit will also enable them to participate in direct trading from Standard Custody’s cold storage solution.
Furthermore, investors will receive flexible net settlement arrangements while avoiding pre-funding requirements. In addition, expert analysis from Cowen Research and Washington Research Group will be accessible for the investors.
The chairman and CEO of Cowen, Jeffrey M. Solomon, stated that the company’s clients will now be able to participate in the crypto and digital asset ecosystem. He boasted of Cowen’s “institutional quality and fully integrated end-to-end execution and custody capabilities.”
Similarly, co-president Dan Charney expressed his pleasure with announcing its new digital assets division- Cowen Digital. He noted that the new platform had been involved in crypto trading on clients’ behalf over the past months. The co-president continued:
“In conjunction with our integrated partners Standard Custody and prime brokerage solutions provider, Digital Prime Technologies, Cowen Digital provides our institutional client base with the same dedicated level of thought leadership, product capability, service and professionalism they have come to expect from Cowen.”
Speaking furthermore, Charney announced the appointment of Drew Forman as the Head of Cowen Digital. Notably, Cowen Digital will leverage Cowen’s strength in Markets, Investment Banking and Management, Prime Brokerage, Research, Markets, and Cowen Digital support.
