Cowen Digital Asset Investment Company LLC, the New York City-based division of Cowen Inc., has partnered with financial technology company PolySign Inc.. in San Francisco, to provide its institutional clients with access to cryptocurrentcies and digital assets, the companies said in a news release.
Cowen has made a $25 million strategic investment in PolySign, leading the $53 million initial closing of the firm’s Series B financing. Blockchain.com, Race Capital, Sandia Holdings and PilotRock Investments also invested in the round. The funds will be used to accelerate PolySign’s ongoing development of institutional blockchain applications, the compamy said.
Other terms of the investment or partnership were not disclosed.
“As digital assets continue to grow and mature as an asset class, institutional investors need trusted custody and trading solutions on par with their requirements for investing in traditional securities,” Cowen CEO Jeffrey M. Solomon said in the news release. “Our partnership with PolySign is another example of how we, at Cowen, position ourselves to better serve our clients by identifying disruptive trends that we believe will impact investment markets for years to come.”
Jack McDonald, CEO of PolySign, said in the news release that Blockchain technology was the future of financial services.
“Cowen’s partnership and investment in PolySign validates the strength of our technology and team, as well as the growing significance of digital assets as an asset class,” he said. “Institutional momentum in the digital asset space is strong, and with the support of Cowen—both through its capital investment and this cutting-edge partnership–we’re positioned to significantly expand our market-facing abilities by bringing innovative solutions to capital markets.”
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 of directors.
Standard Custody & Trust Company, a PolySign subsidiary, will provide custody solutions for a wide range of digital assets, the release said
The companies also said in the news release that they intend to pursue opportunities to integrate PolySign’s digital banking technology into Cowen’s sales and trading platform.
Founded in 1918, Cowen Inc. is a multinational independent investment bank and financial services company that operates a broker-dealer and an investment management division.