Episode 120 of Season 4 of The Scoop was recorded live with The Block's Frank Chaparro, and Drew Forman, Managing Partner and Head of Cowen Digital.
In 2020, Cowen Digital formed to allow institutional customers of the investment bank Cowen to trade digital assets. The digital arm has been growing steadily in its eight months of existence, despite the onset of crypto winter.
In this episode of The Scoop, Cowen Digital managing director and head Drew Forman explains how the crypto industry can rebuild in the wake of FTX’s meltdown, as well as what it will take to repair trust in the space among institutional investors.
According to Forman, many of Cowen’s institutional clients are “getting the pipes ready” to take part in crypto’s next wave. But regulatory clarity is still needed before large, sophisticated institutions get involved. Forman explains:
“I welcome a set of rules ahead of time that we all look to abide by — and hopefully that allows the big institutional investors with the trillion dollar balance sheets to start allocating to the space.”
During this episode Chaparro and Forman also discuss:
- Why talent consolidation is good for the space
- How Cowen Digital manages risk and volatility
- Cowen’s history with Mt. Gox
Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.
This episode is brought to you by our sponsors Tron, Ledn
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