London-based blockchain settlement startup SETL, backed by Credit Agricole, has emerged from administration as management bought back operating assets, staff and intellectual property rights, The Financial Times reported May 3, 2019.
Selling ID2S Stakes to Fund the Company
BTCManager reported on March 8, 2019, that SETL Development Limited had filed for insolvency after being unable to support its blockchain-powered central securities depository system ID2S financially.
CEO Peter Randall stated that they were appointing the business advisory firm Quantuma as the independent administrator as it was “better placed to provide the capital required to support the growth trajectory.”
Almost two months later, on May 3, The Financial Times reported that the previous company SETL Development Ltd. was being closed down as the management had repurchased the main assets of the company under a modified name, SETL Ltd. They have since revamped business with a more simplified business model and a restructured balance sheet. Reportedly, the company has cut down its operating costs by consolidating to only two development centers, one of which is in Ipswich and the other in London.
Under the former Barclays chairman, Sir David Walker, chairman of SETL limited and former Bank of France governor, Christian Noyer, lead of independent director, the company has plans to develop electronic ledgers for financial markets that “settles, records and verifies payments in central bank money rather than cryptocurrencies.”
The management team includes Phillippe Morel as the chief executive, Anthony Culligan as the chief engineer, and Peter Randall, founder of SETL, as the president. The shareholders of the company comprise the rest of the management team, the report suggested.
In his interview with The Financial Times, Sir David told that they were wrong to think that people would find their idea of the previous company compelling enough to invest and help them raise regulatory capital. Now, he said, the startup would provide tools to the infrastructure companies. He also disclosed that the company would be funded by selling its stakes in their previous business.
The company, with support from all its major clients, is hopeful of moving ahead and sticking to its core initiatives.