Citing the sharp deterioration in macroeconomic data, Blockchain.com decided to shut down BACM that served institutional players.
Cryptocurrency market turbulence and liquidity problems have affected several cryptocurrency companies. Popular cryptocurrency 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 remove the asset management subsidiary from the UK registry and further dissolve the company.
Blockchain.com launched its crypto asset management arm, dubbed blockchain.com Asset Management, or BCAM last year in April 2022 in partnership with Altis partners. The objective was to attract institutional actors that offered services that were adapted to their needs.
However, shortly after its listing, the cryptocurrency industry hit a rough patch with several bankruptcies of cryptocurrency lenders like Celsius Networks, Voyager Digital, etc. Later that year, the FTX cryptocurrency exchange went bankrupt, and market sentiment turned even more negative. Commenting on the development, a spokesperson for blockchain.com said Bloomberg:
“blockchain.com Asset Management was launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly. With crypto winter now approaching the one year mark, we have made the business decision to pause operation of this institutional product.”
Like other cryptocurrency players, Blockchain.com has also faced the heat of the cryptocurrency market crash. To absorb losses in the crypto space, Blockchain.com had to lay off 25% of its staff last year. About 44% of the affected workers were from Argentina. While 26% were from the US, 16% were from the UK, with the rest distributed in other parts of the world.
Blockchain.com simplifying operations
Cryptocurrency startup Blockchain.com was founded more than a decade ago in 2011. Shortly thereafter, it opened its new subsidiary after a fundraiser that pushed the company’s valuations from $5.2 billion to $14 billion.
Even during the crypto winter of 2022, Blockchain.com achieved some key milestones. Over the past year, the cryptocurrency startup managed to receive registrations in various countries around the world. Besides. Blockchain.com also entered into a custody agreement with Anchorage Bank in June 2022. Later in October of that year, the crypto firm teamed up with Visa Inc (NYSE:V) to issue a crypto credit card in the United States.
The latest development on Blockchain.com comes at a time when the broader crypto market is experiencing major turmoil amid the crisis at Silvergate Bank.
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Bhushan is a FinTech enthusiast and has a good knack for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrencies. He is continuously in a learning process and stays motivated by sharing the knowledge he has acquired. In his spare time, he reads thrillers and sometimes explores his culinary skills.
