US investment bank Cowen to offer crypto custody services

American multinational investment bank Cowen Inc. will join some Wall Street organizations after announcing plans to hold digital assets for hedge funds and asset managers.

US investment bank Cowen to offer crypto custody services

The bank will form a partnership with Standard Custody & Trust Co. to provide ”institutional-grade” custody services for cryptocurrencies.

Lately, the rally of most crypto assets has caught the attention of many traditional investors and capital holders. Following the increased demand and popularity, the US investment bank Cowen Inc. disclosed it will enable crypto custody services to hedge funds and asset managers.

In order to provide the services, the institution has collaborated with the settlement platform for digital assets Standard Custody & Trust Co. In addition, Cowen will also make a $25M investment in PolySign Inc.

The CEO of Cowen, Jeffrey Solomon stated while explaining the bank’s decision and saying:

”The demand is clearly here. We’re going to be able to help a lot of our institutional clients get over the hump and start trading digital assets in the not-too-distant future.”

Cowen’s investment plan is part of a bigger $53 million fundraising round that includes participants such as Blockchain.com and Race Capital. The cooperation came a few days after the New York State Department of Financial Services authorized Standard as a limited-purpose trust charter. This placed the entity among nine firms that have earned the classification from the custodian.