(Kitco News) - In a positive sign that the worst of the crypto winter may be in the past, crypto payment provider Wyre has removed a recently-imposed withdrawal limit and announced that it will be continuing its normal operations for the foreseeable future.
Last week, Kitco Crypto covered the struggles at Wyre, which was reportedly preparing to wind down its services by the end of January after CEO Ioannis Giannaros sent an email to employees informing them that he planned to liquidate the company and would terminate services by the end of the month.
That all changed over the past week, according to an update posted by Wyre, which indicates that the firm has received funding from an unnamed partner which will allow it to continue delivering services without interrupting withdrawals.
“We received financing from a strategic partner that allows us to continue our normal course of operations,” the company wrote on Twitter. “As a regulated financial institution, we’re proud that we were able to continue delivering our services in a safe and sound manner without pausing withdrawals. We will resume accepting deposits and lift the 90% withdrawal limit effective immediately.”
While the firm did not specify where the funding came from, it noted that the influx of capital will help the company “continue to deliver on our mission to simplify and revolutionize the global financial ecosystem. [...] We’ll continue to operate with transparency and with the best interests of our customers and partners at heart.”
Wyre was founded in 2013 by Ioannis Giannaros and Michael Dunworth and provides payment infrastructure for crypto applications and supports services like custody wallets, transfers and swaps, and know-your-customer (KYC) onboarding. Some of the early investors in the platform include Kraken, Pantera Capital, Stellar Development Foundation and Samsung NEXT and Draper Associates.
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Concerns surrounding the company’s long-term viability arose in September after talks to acquire Wyre by the one-click checkout provider Bolt for $1.5 billion fell through, at which point Wyre and Bolt decided to remain independent businesses.
For now, those concerns have been put to rest thanks to the unknown source of funding that has allowed Wyre to continue operating. It remains to be seen if the recent rally in the crypto market will continue and bring about an end to the crypto winter or be just another bear market rally that eventually reverts to a downtrend in price action.
