As the bear bites hard, blockchain and cryptocurrency exchange company Blockchain.com has unfortunately had to take some difficult measures. The first quarter of 2023 saw a staff layoff at the firm as they sought ways to cut costs during this challenging time.
In addition to laying off employees, it was also revealed that Blockchain.com would be suspending its asset management arm. This decision came after careful consideration by senior leadership who determined that it made financial sense given current market conditions in which trading volume is falling and interest rates are low.
The Blockchain.com’s 11 months old asset management arm was suspended by the firm, according to a report by Bloomberg. The asset arm was launched by the crypto financial services company for about a year and cites the extended crypto winter as the reason for the decision to suspend operation, this marks it as the latest casualty of the crypto winter.
Blockchain.com after a funding round that pushed its valuation moved to set up the subsidiary in April 2022 in London as Blockchain.com Asset Management, in partnership with Altis Partners. Altis Partner was to manage its portfolio using Blockchain.com technology while Standard Custody & Trust Company was named the custody partner.
The subsidiary offered “regulated crypto investment products for institutional investors, family offices and high net worth individuals”. Before it was suspended, a Blockchain.com spokesperson disclosed that the asset management arm operation will be paused.
The company in January laid off 28% of its workforce totaling about 110 members of its staff. However, the lay off followed the hit on the company from a loan deal with the now bankrupt Three arrows capital. Blockchain.com now has a staff of 280, from 160 employees at the start of 2021. All impacted employees were assured to receive severance packages according to country.
Also, it was rumored in February the company is likely to sell off some of its assets to other crypto firms but, a Blockchain.com spokesperson denied the rumor.
Moreso, amidst the crypto winter, Blockchain.com has seen notable landmarks like registration in some countries, reaching a custody agreement with Anchorage Bank, and partnered with Visa late last year to issue a crypto card in the U.S. But these strides were not enough to withstand the impact of the market, thus the need to suspend its asset management arm.
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