Digitalย currency Group (DCG), a leading digital- investment conglomerate, has announced the closure of its TradeBlock subsidiary citing the challenging regulatory environment for digital assets in the Unitedย States and the prolonged cryptocurrency winter.
The platform, which provides trade execution, pricing, and prime brokerage services to institutional investors, will cease operations effective May 31st, 2023, reportsย by a recent Bloomberg report.
DCG Shuts Down TradeBlock
The move by DCG comes as the company negotiates with creditors of its bankrupt lending business. The closure of TradeBlock is expected to have wholeย lotย of implications for the digitalย currency market, particularly for institutional investors who rely on the platform for trading and pricing services.
CoinDesk Inc., a digitalย currency media and events company likewise controlled by DCG, acquired TradeBlock in 2020. As part of the acquisition, the indexing business was folded into CoinDeskโs own operations, while the remaining operations were spun out as the TradeBlock trading platform.
In a statement to Bloomberg, a DCG spokesperson claimed:
Owingย to the state of the broader economy and prolonged cryptocurrency winter, along with the challenging regulatory environment for digital assets in the Unitedย States, we made the decision to sunset the institutional trading platform side of the business.
The decision to shut down TradeBlock was not unexpected, as DCG had previously signaled its intention to focus on its core enterprises. Despiteย theย fact, the move will allow the company to consolidate its operations and streamline its offerings to better serve its clients.
What Is TradeBlock?
TradeBlock was established in 2013 as a digitalย currency trading platform that catered to institutional investors. The platform allowed users to execute trades, access market data and analytics, and manage their digital investment portfolios. TradeBlock likewise offered a range of services including a digitalย currency index, order management system, and a suite of APIs for developers.
The acquisition of TradeBlock by DCG provided plentyย of advantages for the company. Firstly, it allowed DCG to expand its offerings to include institutional-grade trading and prime brokerage services for digital assets. This move was in line with DCGโs focus on supplying infrastructure and services toย facilitate theย expansion of the digitalย currency industry.
Secondly, the acquisition of TradeBlock by DCG gaveย the company with access to a highly skilled team of developers and industry specialists who possess deep knowledge of the digital investment space. Nonetheless, as stated before, the decision has been made to shut down the trading arm of the DCG conglomerate, and TradeBlock will cease operations on May 31st, 2023.
Featured image from Unsplash, chart from TradingView.com
