DCG Announces Shutdown of TradeBlock: End of an Era?

DCG's decision to shut down TradeBlock did not come as a surprise.

Written by: Bitcoinist

Compilation: Blockchain Knight

Digital Currency Group (DCG) announced the closure of its TradeBlock company, citing the uncertainty of the regulatory environment for digital assets in the United States and the extension of the Crypto "winter"**.

The platform, which once provided trade execution, pricing and prime brokerage services to institutional investors, will cease operations on May 31, 2023, according to a recent Bloomberg report.

The move by DCG comes as the company negotiates with creditors over its bankrupt lending business. TradeBlock's shutdown is expected to have a major impact on the Crypto market, especially for institutional investors who rely on the platform for trading and pricing services.

CoinDesk Inc., a crypto media and events company also controlled by DCG, acquired TradeBlock in 2020. Following the acquisition, part of the business was merged into CoinDesk's own business, while the remainder was spun off into the TradeBlock exchange.

In a statement to Bloomberg, a DCG spokesperson said that due to more complex economic conditions and a prolonged Crypto “winter,” as well as uncertainty about the U.S. digital asset regulatory environment, they decided to close the institutional trading platform business.

The decision to shut down TradeBlock was not a surprise, as DCG has previously stated its intention to focus on its core business,** a move that will allow the company to consolidate its operations and simplify its products to better serve customers **.

Founded in 2013, TradeBlock is a digital currency trading platform for institutional investors that allows users to execute trades, access market data and analytics, and manage their digital asset portfolios. TradeBlock also offers a range of services, including a Crypto industry currency index, an order management system, and a suite of APIs for developers.

DCG's acquisition of TradeBlock brings several benefits to the company. First, it allows DCG to expand its offerings to include institutional-grade trading and prime brokerage services for digital assets. This move allows DCG to focus on providing infrastructure and services to support the growth of the Crypto industry. Second, it provides the company with a development team and experts with in-depth knowledge of the digital asset space.

However, as previously stated, DCG has decided to shut down TradeBlock and the trading platform will cease operations on May 31, 2023.