Blockchain.com Decides to Close London-Based Crypto Asset Management Wing
Citing the sharp deterioration in macroeconomic data, Blockchain.com decided to shut down BACM serving institutional players.
The turmoil in the crypto market and liquidity problems have affected several crypto firms. Popular crypto startup Blockchain.com has decided to shut down its UK-based crypto asset management arm.
According to the filing at Companies House, Blockchain.com applied to delist its asset management subsidiary from the UK register and further dissolve the company.
Blockchain.com launched its crypto asset management arm, called Blockchain.com Asset Management, or BCAM last year in April 2022 in collaboration with Altis partners. The aim was to attract institutional players who offer services that satisfy their needs.
Shortly after the IPO, the crypto industry went through a rather difficult update with several bankruptcies from crypto lenders such as Celsius Networks, Voyager Digital, etc. Later that year, the crypto exchange FTX went bankrupt and turned the market mood even more negative. Commenting on the development, a blockchain.com spokesperson told Bloomberg:
“Blockchain.com Asset Management was launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly. With the crypto winter now approaching the one-year mark, we made the business decision to stop operating this institutional product.”
Like other crypto players, Blockchain.com has also faced the heat of the meltdown of the crypto market. To absorb the losses in the crypto space, Blockchain.com had to lay off 25% of its employees last year. About 44% of the affected workers were from Argentina. While 26% were from the US, 16% were from the UK and the remaining are spread across other parts of the world.
Blockchain.com streamlines operations
Crypto startup Blockchain.com was founded more than a decade back in 2011. Soon after, it opened its new subsidiary following a fundraising that raised the company’s valuation from $5.2 billion to $14 billion.
Even during the crypto winter of 2022, Blockchain.com reached some important milestones. Over the past year, the crypto startup managed to receive registration in several countries around the world. Furthermore. Blockchain.com also entered into a custody agreement with Anchorage Bank in June 2022. Later in October of that year, the crypto startup partnered with Visa Inc (NYSE: V ) to issue a crypto credit card in the United States.
The latest developments in Blockchain.com come at a time when the broader crypto market is undergoing major turmoil amid the Silvergate Bank crisis.
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