SETL, a London-based blockchain company filed a notice of insolvency with British authorities on March 7, 2019. According to the notice, SETL is looking to liquidate some of its assets by selling them to “a larger financial services firm.”
SETL Bites the Dust
What makes the abrupt insolvency of SETL surprising is that in October 2018, the company bagged a prestigious license from France’s securities regulator, the Autorité des marchés financiers (AMF) which allowed it to launch a blockchain-powered central securities depository system.
Founded in 2015 by Peter Randall, SETL was launched with an aim to make wholesale payments more efficient and rapid using distributed ledger technology (DLT). The team at SETL comprises of financial services industry veterans with decades of valuable experience on their resume and deep expertise in creating disruptive and innovative solutions.
Sharing his thoughts on the notice of insolvency filed by SETL, Randall said:
“Having made an early investment in the development of ID2S [a benchmark test to meet CSD regulations], SETL Development Ltd recognizes that as an early stage technology firm it is not sufficiently placed to contribute the capital required. As such it is now seeking to place its ID2S holding with a larger financial services firm, one better placed to provide the capital required to support the growth trajectory.”
SETL added that it appointed business advisory firm Quantuma LLP to ensure that its stakeholders and creditors are represented well in the “structural complexity” of the company.
Cash Crunch Dents Blockchain Businesses
Although a number of market intelligence agencies have forecast blockchain-based businesses to flourish in the near future, a lack of capital has forced many of the existing companies to shutter their operations.
BTCManager reported on December 10, 2018, how blockchain startups ConsenSys, Steemit, and SpankChain fired some of their employees due to financial difficulties.
On a more recent note, on January 9, 2019, reports emerged how DLT-based Swiss cryptocurrency exchange ShapeShift laid off 37 employees due to tough market climate.