TradeBlock, a subsidiary of Digital Currency Group (DCG), is set to cease operations, as reported by Bloomberg.
A spokesperson from DCG explained that the decision to close down the institutional trading platform side of the business was influenced by the challenging regulatory environment for digital assets in the United States, compounded by the state of the broader economy and the prolonged crypto winter.
CoinDesk, another subsidiary of DCG, acquired TradeBlock in January 2021. Following the acquisition, some aspects of TradeBlock’s operations were integrated into CoinDesk, while other components were spun off into a separate entity, according to Bloomberg.
DCG has faced other setbacks this year, including the closure of its wealth management unit, HQ Digital, due to economic headwinds. Additionally, DCG’s subsidiary, Genesis, has encountered difficulties with its lending arm, which filed for bankruptcy in January. With a significant debt of $3.5 billion owed to creditors, Genesis has been engaged in discussions with capital providers to address the situation.
Furthermore, Genesis has been involved in a dispute with Gemini, a former collaborator, over a missed payment of $630 million related to their Earn product, which enabled users to earn interest on their cryptocurrency investments.
DCG’s other subsidiaries have also been impacted by various circumstances. HQ Digital, the wealth management subsidiary, was closed down in January, while Luno, DCG’s cryptocurrency exchange, discontinued interest-bearing savings wallets in November 2022.
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