Investing

DCG to Shut Down Institutional Trading Platform TradeBlock on May 31

Tim Fries

Published: May 25, 2023 10:19 pm

Last Updated: May 26, 2023 11:34 am

According to a Thursday report, the Digital Currency Group is shutting down its prime brokerage and institutional trading platform TradeBlock. A company spokesperson told Bloomberg that the main reasons for the decision are the regulatory environment and the broader economic situation.

DCG Planning to Shut Down TradeBlock

Barry Silbert’s Digital Currency Group is reportedly shutting down one of its subsidiaries—TradeBlock. The DCG subsidiary offers pricing, prime brokerage, and trade execution. It is geared toward institutional investors.

TradeBlock was initially acquired by CoinDesk—a cryptocurrency-focused outlet and subsidiary of the Digital Currency Group—in 2021. According to the Thursday report, it is to shut down its operations on May 31st.

A Digital Currency Group spokesperson told Bloomberg that the decision was reached due to the current regulatory climate, as well as the broader economic situation. DCG also cited the effects of the prolonged “crypto winter” as a major factor.

Is DCG in Trouble?

There have been numerous rumors about the state of the Digital Currency Group since the collapse of Sam Bankman-Fried’s FTX. Genesis was the first subsidiary of Barry Silbert’s company to spark concerns after it froze withdrawals in November 2022.

In 2023, after several months of uncertainty, Genesis’ lending arm filed for bankruptcy and sparked a public feud between Barry Silbert and the Winklevoss twins. While the dispute was seemingly resolved by the end of January, more recent reports indicate that DCG failed to make a $630 loan payment to Gemini.

Additionally, along the Digital Currency Group shut down HQ, its wealth management unit, in January. Early reports indicated that CoinDesk was also looking for a buyer amidst the DCG turmoil, though nothing materialized up until this point, and there haven’t been any updates on the matter in several months.

This article originally appeared on The Tokenist