Cowen is the most recent Wall Road agency to hitch the cryptocurrency craze by launching a separate division centered on digital property
Throughout a Friday appearance on CNBC’s “Closing Bell,” Jeffrey Solomon stated that there’s a important demand for digital property.
“We’ve been internet hosting occasions and speaking to our purchasers for effectively over a 12 months. We see that demand,” Solomon stated.
Final October, Solomon stated that these institutional purchasers who had been but to dip their toes into crypto would change into concerned in digital property “extra closely” within the following years.
For now, cryptocurrencies are nonetheless pushed by retail merchants, and institutional adoption continues to be in its infancy even though extra outstanding Wall Road corporations have began testing the waters with the novel asset.
In the latest interview, Solomon has famous that the overwhelming majority of buying and selling happens in a small proportion of cash, which makes them just like equities. The Cowen boss views Bitcoin as a retailer of worth.
Earlier this month, the funding financial institution launched a cryptocurrency arm known as Cowen Digital.
The brand new division is meant to supply Cowen’s purchasers with the power to commerce cryptocurrencies with out worrying about custody points. The corporate shops property on behalf of its purchasers in chilly storage.
Commonplace Custody & Belief, a subsidiary of PolySign, has partnered with Cowen Digital to supply custody companies.
Cowen’s crypto unit has kicked off buying and selling with a complete of 16 totally different cryptocurrencies, together with Bitcoin and Solana. Aside from abnormal digital property, Cowen Digital additionally plans to supply publicity to non-fungible tokens (NFTs), refined cryptocurrency derivates in addition to tokens from the decentralized finance sector.
In November, Solomon opined that regulation can be factor for cryptocurrencies since it could assist to mitigate adversarial dangers.