Digital Currency Group (DCG) will shut down its institutional trading platform, TradeBlock, by the end of the month, Bloomberg reported. May 25.
Crypto Market Challenges
DCG’s decision to shut down TradeBlock comes amid a tough crypto market. A DCG spokesperson cited various challenges, saying:
“Due to the state of the broader economy and the prolonged crypto winter, as well as the challenging regulatory environment for digital assets in the United States, we have made the decision to end the side of the firm’s institutional trading platform.”
CoinDesk – a subsidiary of DCG – acquired TradeBlock in 2020 for an unknown amount. The outlet said in a separate report that it has 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 closed on May 31, Bloomberg reported.
Other DCG issues
Another DCG subsidiary, Genesis, is also struggling. The Genesis lending arm filed for bankruptcy in January. The company owes creditors $3.5 billion and recently said it was in talks with capital providers.
Genesis is also in conflict with Gemini, with whom it previously 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 were also affected by the conditions. DCG closed its wealth management subsidiary, HQ Digital, in January. DCG’s crypto exchange, Luno, also discontinued interest-bearing savings wallets in November 2022.
Post-DCG institutional trading platform TradeBlock appeared first on CryptoSlate.