According to a Bloomberg report, Blockchain.com plans to shut down its wealth management division less than a year after going live. March 9.

Blockchain.com closes subsidiary

Through its wealth management division, Blockchain.com offered an investment strategy that tracks the price of Bitcoin against the dollar. Bloomberg also reportedly planned to offer “algorithm-based risk management exposure” to Bitcoin.

Blockchain.com has yet to officially announce its decision. However, the subsidiary has applied for removal from the UK Companies Register.

That submission, dated March 6, now open to the public.

The first Gazette notice of the company’s voluntary strike, which will inform creditors more broadly of the closure of the subsidiary, will be published on March 14.

Wealth management division lasts less than a year

Blockchain.com’s short-lived asset management service was launched just 11 months ago.

Blockchain.com had a strong performance last year. Currently valued at just $3 billion to $4 billion, it has completed a funding round that will reach a $14 billion valuation in March 2022. This allowed the company to launch its wealth management service that spring.

A spokesperson said Blockchain.com launched in April 2022, “shortly before macroeconomic conditions deteriorated rapidly.” The company did not mention specific events, but various crypto projects, including Terra and Celsius, collapsed at the time.

This decision is just one of blockchain’s recent downsizing strategies. The company laid off about 28% of its workforce in January, following layoffs in July 2022.

Decisions should not affect most users

It does not appear that this decision will affect retail users of Blockchain.com.

Blockchain.com is a medium-sized cryptocurrency exchange offering $3.2 million in trading volume in the last 24 hours, according to Coingecko data.

The company also offers various services such as cryptocurrency wallets, on-chain data explorers, and services for various institutions.

The company operates in the UK but serves users in multiple locations.

Posted In: Bankruptcy, Exchanges

By Jules

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