DCG shutters TradeBlock institutional trading platform

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Dig­i­tal Cur­ren­cy Group (DCG) will close its insti­tu­tion­al trad­ing plat­form, Trade­Block, by the end of the month, Bloomberg report­ed May 25.

Crypto market challenges

DCG’s deci­sion to close Trade­Block comes amidst a harsh cryp­to mar­ket. One DCG spokesper­son cit­ed var­i­ous chal­lenges, stating:

“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.”

Coin­Desk — a sub­sidiary of DCG — acquired Trade­Block in 2020 for an unknown amount. The news out­let said in a sep­a­rate report that it had main­tained the index­ing side of the busi­ness, which is cur­rent­ly known as Coin­desk Indices.

Only the insti­tu­tion­al trad­ing side of what has now become Trade­Block will be closed.

Trade­Block will be shut­tered on May 31, Bloomberg reported.

Other DCG issues

Anoth­er of DCG’s sub­sidiaries, Gen­e­sis, is also fac­ing dif­fi­cul­ties. The lend­ing arm of Gen­e­sis filed for bank­rupt­cy in Jan­u­ary. The com­pa­ny owes $3.5 bil­lion to cred­i­tors and recent­ly said that it is in dis­cus­sions with cap­i­tal providers.

Gen­e­sis is also in con­flict with Gem­i­ni, with which it for­mer­ly offered an Earn prod­uct that allowed users to earn inter­est on their cryp­to invest­ments. Gem­i­ni recent­ly claimed that DCG missed a $630 mil­lion pay­ment that was due.

Two oth­er DCG sub­sidiaries have addi­tion­al­ly been affect­ed by con­di­tions. DCG shut down its wealth man­age­ment sub­sidiary, HQ Dig­i­tal, in Jan­u­ary. DCG’s cryp­to exchange, Luno, also dis­con­tin­ued inter­est-bear­ing sav­ings wal­lets in Novem­ber 2022.

The post DCG shut­ters Trade­Block insti­tu­tion­al trad­ing plat­form appeared first on Cryp­toSlate.

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