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Citing the strong deterioration in the macroeconomic data, Blockchain.com decided to shutdown BACM that served institutional players.
The crypto market turmoil and liquidity issues have been impacting several crypto firms. Popular crypto startup Blockchain.com has decided to shut down its UK-based crypto asset management arm.
According to the filing on Companies House, Blockchain.com applied to strike the asset management subsidiary off the UK register 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 goal was to attract institutional players offering services that cater to their requirements.
However, soon after its listing, the crypto industry went through a pretty rough patch with several bankruptcies of crypto lenders like Celsius Networks, Voyager Digital, etc. Later that year, crypto exchange FTX went bankrupt turning the market sentiment further negative. Commenting on the development, a blockchain.com spokesperson told Bloomberg:
“Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly. With crypto winter now approaching the one year mark, we made the business decision to pause operating this institutional product”.
Alike other crypto players, Blockchain.com too has been facing the heat of the crypto market meltdown. To absorb the losses in the crypto space, Blockchain.com had to lay off 25% of its staff last year. About 44% of the impacted 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 Streamlining Operations
Crypto startup Blockchain.com was founded more than a decade back in 2011. Soon after, it opened its new subsidiary after a fundraiser that raised the company’s valuations from $5.2 billion to $14 billion.
Even during the crypto winter of 2022, Blockchain.com attained some key milestones. During the last year, the crypto startup managed to receive registration in several countries across the globe. Furthermore. Blockchain.com also entered into a custody agreement with Anchorage Bank in June 2022. Later in October of that year, the crypto startup joined hands with Visa Inc (NYSE: V) to issue a crypto credit card in the United States.
The latest development in Blockchain.com comes at a time when the broader crypto market is undergoing major turmoil amid the crisis at Silvergate Bank.