EQONEX Latest To Leave ‘Crowded’ Crypto Exchange Space

Company seeks to focus on asset management, custody businesses and plans to launch structured products unit

article-image

Source: DALL·E

share

key takeaways

  • Declining trading volumes as a result of market volatility a reason for the exchange shutdown, EQONEX CEO Jonathan Farnell says
  • The company added former Jefferies and Royal Bank of Scotland executives to its asset management business last month

EQONEX is the latest crypto exchange to close its doors during tough market conditions. 

The digital asset-focused financial services company said Monday it’s shifting its focus to its asset management and cryptocurrency custody business lines. The firm revealed that a new structured product business is also in the works.

The Nasdaq-listed company’s exchange is slated to close trading Aug. 22 and halt withdrawals on Sept. 14.

Closing the exchange will reduce operating costs and allow the company to grow where it has larger competitive strengths, CEO Jonathan Farnell said in a statement.  

Farnell called the crypto exchange space “crowded,” adding that the industry has nearly 300 spot exchanges. 

“The recent extreme market volatility and trading volumes have added to the headwinds being felt by exchange operators,” Farnell said. “We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term.”

Coinbase, for example, reported a net loss of $1.1 billion in the second quarter as its net revenue fell by 31% from the prior quarter. The publicly traded exchange’s total quarterly trading volume was $217 billion, about a 30% decrease from the previous quarter, which the exchange attributed to market conditions in its shareholder letter.

An EQONEX spokesperson did not immediately return a request for comment.

A focus on structured products

EQONEX’s asset management business comprises investment products, structured products, a fund of crypto hedge funds and a lending division. The company launched a bitcoin exchange-traded note on the Deutsche Börse XETRA Exchange last month.

Digivault, the group’s digital asset custody business, is registered with the United Kingdom’s Financial Conduct Authority and recently became the first custody partner of stablecoin poundtoken.io.

EQONEX’s principal place of business will move from Hong Kong to the UK due to its asset management and custody operations being primarily based in the latter region. 

In addition to focusing on its asset management and custody businesses, EQONEX is laying the groundwork for a structured products unit to offer professional investors and institutions exposure to bespoke crypto investments. 

The move follows the company’s hire of Nick Cogswell as head of sales for its asset management business last month and Franklin Heng as head of asset management in Asia.

Cogswell previously worked on equity structured product sales at Jefferies and has held senior roles at Santander and Lehman Brothers. Heng joins EQONEX after spending 11 years at Springboard Capital and also formerly worked as head of equity derivatives and structured products distribution for The Royal Bank of Scotland.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

The mining segment has healthy buyers likely to be “very inquisitive and active” around the halving, crypto advisory firm partner says

article-image

In reality, many of the oft-touted uses for bringing blockchain and AI together aren’t actually all that useful

article-image

The latest total broke the previous daily net inflow high of $493 million set on Feb. 13

article-image

The liquid restaking token’s TVL shot up over 200% in the past month

article-image

Analysts say continued demand for spot bitcoin ETFs, optimism that a spot ether product will hit the market this year and anticipation of bitcoin’s next halving are the main tailwinds for this rally

article-image

Bitcoin may have sucked air out of the room but there’s still plenty going on across the rest of crypto and web3