There are many blockchain firms and startups that have either not been able to survive the volatility of the cryptocurrency markets or simply ran out of funding. CoinGeek previously reported SETL had declared insolvency less than a month ago. It appears as though SETL has now emerged from bankruptcy. The firm raised $39 million from institutional investors including banking group Citi and Credit Agricole.
The development has shocked analysts who did not believe that SETL, based in London, would be able to recover financially. Many believed that SETL would simply look to be acquired by a larger financial services company.
However, the company has been able to restructure its balance sheet significantly. This was partially due to the fact that it has consolidated several of its development centers into two main locations, located in London and Ipswich. The two individuals involved have distinguished resumes—with Sir David Walker, ex-chairman of Barclays, and Christian Noyer, former governor at the Banque de France—being appointed as the chairman and independent director of the new company, respectively. Walker is also the author of The Walker Report, which focuses on corporate governance with respect to the U.K.’s finance sector.
The company stresses that it will continue to serve its existing clients, and that it plans to offer a wide array of “blockchain-based solutions” across many use cases. The company plans to partner with existing financial service providers to expand significantly. It’s now a new company by the name of SETL Ltd, and it has purchased both the assets and intellectual property (IP) of the previous company.
Sir David Walker admitted that the demand was significantly weaker than previously anticipated, and that this was one of the reasons for the company’s failures. He stated: “We thought the case would be seen as compelling but users weren’t ready to put their hands in their pockets to contribute to regulatory capital.”
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.