Amid an ongoing cryptocurrencyย market downturn, digital asset-focused deal financialย resources company Digitalย currency Group (DCG) has announced it is closing its subsidiary TradeBlock which offers its trading services to institutional investors.
The trading platform is scheduled to be shut down on May 31, Bloomberg reported.
โ 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,โ stated a spokesperson for DCG.ย
CoinDesk Inc., which is likewise a DCG offshoot, purchased TradeBlock in 2020.ย The cryptocurrency media and events offshoot atย theย beginning folded the purchased indexing business into its own. The remaining operations were followingย that spun out under the brand of TradeBlock. The financial details of the deal were not revealed.
Inย theย meantime, a number of cryptocurrency industry observers are surprised by the deal financialย resources firmโs move as DCG had previously intimated that it was planning to focus on developing its core business. ย
TradeBlock reveals on its website that its โAPI-centric end-to-end platform enables institutions to streamline their cryptocurrency investment trading workflows with purpose-built pre-trade, trade execution, post-trade, and reporting solutions.โ
Financial woes continue
Meanwhile,ย DCG has been making efforts to sell its bankrupt lending subsidiary Genesis which would allow the business to pay back at least a share of the approximately $3.4 Billion it owes its creditors.
In a May 9 statement, DCG stated that it โ persistsย to be engaged with the numerous stakeholders in the Genesis Financialย resources restructuring process pursuant to the 30-day mediation period entered into by all parties on May 1.โ
โOn a parallel path and to provide further financial flexibility, DCG is in discussions with financialย resources providers for growth financialย resources and to refinance its outstanding intercompany obligations with Genesis,โ the business said.
In an earlier statement, released on 20 January 2023, DCG stated that it โowes Genesis Financialย resources approximately $526 Million due in May 2023 and $1.1 Billion under a promissory note due in June 2032. DCG fully plansย to address its obligations to Genesis Financialย resources in the course of a restructuring.
DCG failed to repay a $630 Million of debt to Genesisโs bankruptcy estate earlier theseย 30ย days, triggering a declaration by Cameron Winklevoss, the CEO of cryptocurrency exchange Gemini who is one of the debtors, that he could sue DCG and its CEO Barry Silbert over the repayment of its $900 Million loan.ย
