Blockchain startup SETL files for insolvency, seeks to sell subsidiary

London-based blockchain startup SETL has announced that it is seeking to sell off its subsidiary ID2S, the regulated central securities depository (CSD), to a larger financial services firm.

The sale has been announced as part of a larger corporate reorganization of the company. CoinDesk reported that SETL has filed for insolvency with the UK authorities.

Founded in 2015, SETL is an institutional payment and settlement infrastructure provider which uses blockchain technology. It aims to deploy a multi-asset, multi-currency institutional payment and settlements infrastructure based on blockchain technology.

The startup has raised $39 million till date and is backed by Citi, Deloitte, Computershare and Credit Agricole, among others.

In an official release dated March 07, SETL said that it has made significant capital contributions to ID2S, which successfully completed its T2S connection testing and was fully approved under CSDR last year.

“Having made an early investment in the development of ID2S, SETL Development Ltd recognises 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,” it said.

SETL announced that it has appointed Quantuma LLP as an independent administrator to help it balance its strategic infrastructure holdings and continue its software development activities on a business as usual basis.

“Separating the software development business from the investments portfolio is a highly complex process, requiring expert, experienced and neutral management of the interests of all the creditors and stakeholders. The directors are all fully engaged and aligned in this approach,” Sir David Walker, the company’s chairman added.