Breaking: Digital Currency Group (DCG) Pulls The Plug On…
Digital Currency Group (DCG), a leading digital-asset conglomerate, has announced the closure of its TradeBlock subsidiary citing the challenging regulatory environment for digital assets in the US and the prolonged crypto winter.
The platform, which provides trade execution, pricing, and prime brokerage services to institutional investors, will cease operations effective May 31st, 2023, according to 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 significant implications for the cryptocurrency market, particularly for institutional investors who rely on the platform for trading and pricing services.
CoinDesk Inc., a cryptocurrency media and events company also controlled by DCG, acquired TradeBlock in 2020. As part of the acquisition, the indexing business was folded into CoinDesk’s own operations, while the remaining operations were spun out as the TradeBlock trading platform.
In a statement to Bloomberg, a DCG spokesperson claimed:
Due to the state of the broader economy and prolonged crypto winter, along with the challenging regulatory environment for digital assets in the US, 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 businesses. Although, the move will allow the company to consolidate its operations and streamline its offerings to better serve its clients.
What Is TradeBlock?
TradeBlock was founded in 2013 as a digital currency trading platform that catered to institutional investors. The platform allowed users to execute trades, access market data and analytics, and manage their digital asset portfolios. TradeBlock also offered a range of services including a cryptocurrency index, order management system, and a suite of APIs for developers.
The acquisition of TradeBlock by DCG provided several benefits 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 DCG’s focus on providing infrastructure and services to support the growth of the cryptocurrency industry.
Secondly, the acquisition of TradeBlock by DCG provided the company with access to a highly skilled team of developers and industry experts who possess deep knowledge of the digital asset space. However, as said 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