Digital Currency Group has revealed its decision to sunset its institutional trading platform, Tradeblock, on May 31, 2023. The company attributes the move to the “challenging regulatory environment” and the enduring effects of the “prolonged crypto winter,” signaling the conclusion of its subsidiary’s operations.
According to a DCG spokesperson who spoke with Bloomberg, Digital Currency Group (DCG) has decided to close its trading platform, Tradeblock, this month. The Connecticut-based institutional trading platform, founded by Greg and Jeff Schvey in 2013, was acquired by crypto news outlet Coindesk in January 2021. Tradeblock successfully raised $53.1 million across five funding rounds since its inception.
In a statement sent to reporters Olga Kharif, Anna Irrera, and Hannah Mille, a DCG spokesperson confirmed that Tradeblock is set to cease operations on May 31. Notably, the trading platform provided trade execution services but also prime brokerage options. Although initially founded by Greg and Jeff Schvey, the company was led by Breanne Madigan, a former Goldman Sachs employee. Tradeblock’s data also served as a reference index for Coindesk’s Defi Index methodology.
“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,” a DCG spokesperson told Bloomberg on Thursday.
DCG’s latest announcement comes in the wake of its missed payment to creditors for $630 million, a setback experienced during its subsidiary Genesis’s bankruptcy proceedings. Just three days ago, Genesis informed Bitcoin.com News that, “as part of the ongoing mediation process, the parties are discussing potential terms of forbearance, a standalone chapter 11 plan for Genesis and other options to recover assets and maximize value to stakeholders.” Earlier this year, reports surfaced regarding DCG’s closure of its wealth management business operation, HQ Digital, due to similar challenges.
What are your thoughts on Digital Currency Group’s decision to sunset its trading platform, Tradeblock? How do you think the challenging regulatory environment and prolonged crypto winter will impact the future of institutional trading in the cryptocurrency industry? Share your insights and opinions about this subject in the comments section below.
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