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Cowen (COWN) Launches Cowen Digital, Its Digital Asset Division

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Cowen Inc. COWN recently rolled out a new digital asset division, Cowen Digital LLC, publicly. This wholly-owned subsidiary of Cowen is headquartered in Stamford, CT and provides secured full-service trade execution and custody solutions to institutional clients.

Cowen’s strategic partner, PolySign’s Standard Custody & Trust, helps in providing custody solutions, while Digital Prime Technologies is its prime brokerage solutions provider.

“Through Cowen Digital, our clients now have access to the crypto and digital asset markets with our institutional quality and fully integrated end-to-end execution and custody capabilities,” said Jeffrey M. Solomon, Cowen’s chair and chief executive officer.

Cowen Digital enables institutional investors to access the company’s aggregated liquidity through a trusted counterparty. The platform does not require any pre-funding and offers flexible net settlement options. Further, it utilizes Cowen’s proprietary algorithms through high-touch and low-touch trading.

Institutional clients can also expect expert analysis from Cowen research and its policy experts. Clients can trade directly from Standard Custody’s cold storage solution. They can further benefit from simplified operational and capital efficiencies, along with post-trade reporting.

The new division brings proven expertise in traditional finance to the digital ecosystem. It will support and assist institutional clients as they explore the evolution of blockchain and digital assets.

In the future, the digital platform expects to include derivatives and futures, financing solutions, as well as access to non-fungible tokens and decentralized finance space.

Over the past several months, Cowen has been building the required infrastructure and system for the launch of Cowen Digital. The new digital platform, along with its already existing broker dealer and investment management division, is expected to bode well for the company in the long run.

Shares of COWN have declined 25%, wider than the industry’s fall of 6%, in the past six months.

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Currently, Cowen carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Companies Tapping The Digital Asset Space

In an effort to strengthen and enhance its presence in the digital asset space, Citigroup C announced in November 2021 that it would hire 100 additional people in its blockchain and digital assets division.

Citigroup, which has long been planning to enter the crypto space, began offering digital asset services for its wealthy clients with the launch of the business offshoot — Digital Assets Group. This business, a part of Citigroup’s wealth management division, focuses on cryptocurrencies, non-fungible tokens, stablecoins and central bank digital currencies.

In July 2021, JPMorgan JPM became the first major bank in the United States to allow its financial advisors to offer all of its wealth-management clients access to cryptocurrency funds.

Further, in February 2022, JPM announced that it is opening a virtual lounge named Onyx in Decentraland to enter the metaverse.

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