DCG Shuts Down TradeBlock's Trade Execution and Prime Brokerage Unit
TradeBlock's trade execution and prime brokerage services to be discontinued as of May 31st.
Because Bitcoin
May 26, 2023
Digital Currency Group (DCG), the parent company of CoinDesk, has announced the closure of its trade execution and prime brokerage services unit, TradeBlock. The decision to shut down the institutional trading platform, effective May 31, was made due to the impact of the broader economy, the prolonged crypto winter, and the challenging regulatory environment for digital assets in the United States.
A spokesperson from DCG stated, "We have decided to sunset the institutional trading platform side of the business, known as TradeBlock, given the current circumstances."
CoinDesk acquired TradeBlock in 2020 and subsequently established it as an independent entity. CoinDesk retained the index data business from the acquisition and rebranded it as CoinDesk Indices, which has been a successful venture.
DCG recently missed a substantial debt payment and saw its CFO resign. Despite reporting a significant loss in 2022, DCG experienced improved performance in the first quarter of this year due to surging cryptocurrency prices.
Excluding the Genesis business, which remains under Chapter 11, DCG projected a positive outlook with estimated revenue and EBITDA figures for 2023.
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