Blockchain.com Suspends Asset Management Subsidiary Amidst Crypto Winter

Blockchain.com, the well-known cryptocurrency financial services firm, is suspending operations of its asset management subsidiary, Blockchain.com Asset Management, less than a year after it was opened. This news comes amidst what is being referred to as the “crypto winter”, a period of prolonged market stagnation that has affected the entire cryptocurrency industry.

The subsidiary was created in partnership with Altis Partners in April of 2022 and promised to offer “regulated crypto investment products for institutional investors, family offices and high net worth individuals.” However, it appears that the macroeconomic conditions have deteriorated since then, leading to the decision to suspend operations.

According to a Bloomberg report, Blockchain.com Asset Management has applied to be removed from the United Kingdom companies register on March 5, and had not yet filed its first annual account. The company was also forced to lay off 260 employees earlier this year, which may be indicative of wider financial difficulties.

Blockchain.com’s decision to suspend operations of the asset management subsidiary is a notable development in the cryptocurrency industry. The company was founded in 2011 and has been involved in several high-profile partnerships and collaborations, including a custody agreement with Anchorage Bank and a partnership with Visa to issue a crypto card in the United States.

However, the prolonged downturn in the cryptocurrency markets has evidently taken its toll on the company’s operations, leading to the suspension of its asset management subsidiary. It remains to be seen whether this will have wider implications for Blockchain.com and the industry as a whole.

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