Prime brokerage technology solutions provider Digital Prime Technologies (previously known as DLCC), which creates and develops turnkey products to meet the demands of large financial institutions, recently announced in a news release that it has finalized and closed on a strategic investment from a Cowen Inc. (COWN:NASDAQ) affiliate company.
The company advised that Cowen intends to incorporate Digital Prime 's software as part of its efforts to expand its prime brokerage capabilities for institutional clients with a strong emphasis on the digital asset sector.
Traditionally, prime brokerage solutions offer investment banks and financial institutions a bundled group of services that allows hedge funds and large investment clients to borrow securities or cash to maximize net returns. These services generally include cash management, leveraged trade execution and securities lending.
Digital Prime Technologies noted that the investment from Cowen will give the company the runway to quickly scale its team and operations and to enhance its platform to address demand from Wall Street firms looking to gain access to the rapidly evolving digital assets sector.
Digital Prime Technologies' Co-Founder and CEO James Runnels commented, "We are very excited to partner with Cowen's talented team and provide them with a customized digital asset offering. Their sophistication and decision to leverage our technology to expand their digital asset capabilities validates Digital Prime Technologies' industry-leading platform of choice for institutional finance looking to offer digital asset services. Additionally, their strategic investment will accelerate our aggressive growth plans in 2022 and beyond."
Cowen and Company's Co-President Dan Charney remarked, "With this strategic partnership and investment, Cowen continues to position itself to better serve our clients with institutional-grade custody and trading solutions for digital assets. We're excited to work with James and his talented team to accelerate in Digital Prime's momentum and the growth of digital assets as a mature asset class."
The firm stated that under the terms of the strategic investment arrangement, Cowen's Head of Global Securities Finance Matthew Baldassano will join Digital Prime Technologies as a member of its Board of Directors. The report did not disclose any further details regarding the investment or partnership.
Digital Prime Technologies advised that its software and platform provides its customers with the ability to quickly deploy a full suite of prime brokerage solutions including new classes of investments such as digital assets. Though the sector is changing rapidly and can appear to be complicated at times, the company noted that its fully customizable suite of prime services products allows Wall Street financial firms and other clients to tap into the digital asset space based upon their own specific investment objectives and compliance requirements.
The company's comprehensive platform lets clients interact with all their preferred service providers such as custodians and liquidity partners in one place via a single platform. The platform combines enterprise-grade technology with full API connectivity that allows businesses seamless entry for accessing digital assets.
Cowen Inc. is a publicly traded diversified financial services company based in New York. The firm, which was established in 1918, provides clients with a wide array of investment banking, prime brokerage, global clearing, research, sales and trading, commission management and investment management services.
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