London-based blockchain startup SETL has filed for insolvency with UK authorities and has appointed administrators to oversee the sale of its central securities depository (CSD) subsidiary ID2S to a larger financial services firm.
Launched in 2015, SETL is a multi-asset, multi-currency institutional payment and settlements infrastructure based on blockchain technology. In October 2018, the firm was granted approval from the French securities regulator to run a CSD. The approval allowed SETL to connect to the TARGET2-Securities (T2S) platform, a European securities settlement engine which offers centralized delivery-versus-payment (DvP) settlement in central bank money across all European securities markets.
In a blog post, SETL said that it has made significant capital contributions to ID2S, and now that the CSD is operational, the company can move forward with the next phase of its corporate development plan.
“Having made an early investment in the development of ID2S, SETL Development Ltd recognizes that as an early stage technology firm it is not sufficiently placed to contribute the capital required,” SETL said. “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 appointed Quantuma LLP as an independent administrator to help shape the future structure, enable the company to 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,” said SETL Chairman David Walker. “The directors are all fully engaged and aligned in this approach.”
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