Blockchain.com, a crypto services company, is suspending operations of its asset management subsidiary. The service had been operational for less than a year and appeared to be the latest casualty of the ongoing crypto winter.
Blockchain.com cites the prolonged crypto winter as the reason for its decision to suspend operations of its asset management arm launched only 11 months ago.
The London-based Blockchain.com asset management subsidiary applied to be removed from the United Kingdom companies register on March 5. The Feb. 15 application came when the company had yet to file its first annual account.
In April 2022, Blockchain.com asset management (BCAM) was launched to attract institutional investors. The subsidiary was intended to manage portfolios using Blockchain.com technology and promised to offer regulated crypto investment products for institutional investors, family offices, and high-net-worth individuals.
Unfortunately, the crypto industry faced a rough patch shortly after its launch, with asset prices plummeting rapidly. This was caused by the bankruptcy of crypto lender Celsius Network, as well as the fall of several other prominent crypto firms.
During the crypto winter, Blockchain.com achieved several milestones. It received registration in multiple countries throughout 2022. It entered into a custody agreement with Anchorage Bank and other trading platforms in June. In October, it partnered with Visa to issue a crypto card in the United States.
Now, with crypto winter approaching its one-year mark, BCAM has made the business decision to pause its institutional product operations. The firm, headquartered in the Cayman Islands, announced in January that it would let go of 28% of its workforce. This decision was made due to the challenges faced by the crypto ecosystem in 2022.
The parent company, founded in 2011, opened the new subsidiary shortly after a funding round that increased its valuation from $5.2 billion to $14 billion. Standard Custody & Trust Company was named the custody partner for the new subsidiary in April.