The century-old respectable investment bank Cowen Inc. has recently declared its plans to provide crypto custody services of “institutional-grade” for hedge funds and asset management companies. As per reports, the plans to provide crypto custody aim to facilitate users to store popular digital currencies like Bitcoin.
Crypto Custody Services by Cowen Aid Storing The Digital Asset
Cowen CEO Jeffrey Solomon has mentioned in a statement that;
“Institutional demand for cryptocurrencies is high enough already, so it is time to step into the crypto custodial business. The bank will help financial institutions to start trading crypto in the near future.”
The move from Cowen Inc is followed by the increasing demand of cryptocurrency prices for digital assets like Bitcoin, Ethereum, and other digital currencies soaring prices this year. Major companies, like Tesla, MicroStrategy, top hedge funds, and Goldman Sachs, are forming the crypto trading group that offers Bitcoin investments to their wealthiest clients, such as Morgan Stanley.
Cowen Bank to Invest in PolySign
The bank also intends to make a significant investment of $25 million into PolySign, a company co-founded by Ripple CTO David Schwartz and run by CEO Jack McDonald. PolySign is a transformative financial technology company that provides institutional investors with cutting-edge blockchain-enabled infrastructure in support of digital assets across the capital markets and payment sectors making products that enable financial institutions to deal with crypto assets.
The $25 million investment announced by the bank is merely half of the total amount of funds raised. The value of funds raised recently calculates up to $53 million. The list of investors includes names of Blockchain.com and Race Capital.
As part of Cowen’s strategic investment in PolySign, Dan Charney, Co-President of Cowen and Company, and John Holmes, Cowen’s Chief Operating Officer, will join PolySign’s Board. However, other terms of the investment or partnership were not disclosed.