• Blockchain.com has announced the suspension of its asset management subsidiary due to the prolonged crypto winter.
• The subsidiary was launched 11 months ago and promised to offer regulated crypto investment products for institutional investors, family offices, and high-net-worth individuals.
• In January, Blockchain.com had to let go of 28% of its workforce due to challenges faced by the crypto ecosystem in 2022.
Blockchain.com Suspends Asset Management Arm
Blockchain.com has announced that it is suspending operations of its asset management subsidiary due to the prolonged crypto winter. The service had been operational for less than a year when this business decision was made.
Launched 11 Months Ago
The London-based Blockchain.com asset management subsidiary applied to be removed from the United Kingdom companies register on March 5th after being launched in April 2022 with the intention of attracting institutional investors through offering regulated crypto investment products for institutional investors, family offices, and high-net-worth individuals.
Challenges Faced in Crypto Ecosystem
The prolonged crypto winter caused by various events such as bankruptcy of cryptocurrency lender Celsius Network, fall of several other prominent crypto firms and declining asset prices forced Blockchain.com to make some difficult decisions including letting go 28% of its workforce which was announced in January 2021 and now suspending operations of its asset management arm altogether.
Milestones Achieved During Crypto Winter
Despite these struggles, Blockchain.com achieved several milestones during the past year such as receiving registration in multiple countries throughout 2022, entering into a custody agreement with Anchorage Bank and other trading platforms in June, as well as partnering with Visa to issue a crypto card in the United States in October 2020 .
Conclusion
In conclusion, Blockchain has decided to suspend operations of its asset management arm due to the challenging conditions created by the ongoing crypto winter despite achieving several milestones during this time period such as receiving registrations from multiple countries throughout 2022 and partnering with Visa for a US based crypto card launch .
