Crypto startups shrink as banks expand tokenized services

BitMEX announced on July 22 it will end exchange services on Sept. 23, stopping new registrations immediately, restricting new positions from Aug. 26 and allowing users to log in and withdraw after the platform closes. BitMart announced on July 26 that trading will stop Aug. 26 and that formal platform operations are scheduled to end Jan. 31, 2027. BitMEX described the decision as “a strategic review of its business and the wider industry.” BitMart cited “operating conditions, the market environment and its future direction.”

The wind-downs come amid a broader set of closures, restructurings and product retirements across exchanges, DeFi protocols, NFT marketplaces, wallets, games and infrastructure providers. Balancer Labs announced it will wind down its corporate entity following a 2025 exploit and persistent revenue shortfalls; the Balancer protocol will continue under a DAO, a foundation and independent service providers. Polygon paused its zkEVM Mainnet Beta sequencer on July 1 and issued user migration and claim instructions.

Other projects that have closed or changed operations this year include a standalone NFT marketplace that moved services into a wallet, a platform company that began winding down while its DAO remained separate, and a range of consumer games, wallets and analytics tools. Names publicly tied to recent closures or restructurings include Moonbeam, Loopring DEX, Radiant Capital and a platform company connected to onchain analytics.

Retirements and sequencer or product shutdowns require token holders and DeFi users to move assets or claim funds before deadlines. Contracts that lock funds into retiring infrastructure can be harder to access if migration or claim procedures are incomplete. Companies and DAOs have published migration guides and timelines that differ by project.

Business statements and governance updates cite multiple reasons for the changes: shrinking revenue, legal or operational fallout from hacks, tighter financing conditions, and decisions by founders to narrow product lines or transfer core functions to DAOs and third‑party service providers. Those filings and notices typically follow months of declining income or legal pressure.

Market data at the end of July put Bitcoin near $63,400, about 50% below its Oct. 6, 2025 record near $126,200. Historical drawdowns from prior cycles recorded larger percentage losses.

Separately, banks and asset managers are increasing use of tokenization and on‑chain settlement for selected services. Financial institutions have piloted tokenized money‑market funds on public blockchains and are testing ledger-based settlement inside existing banking relationships that keep regulated balance sheets and custodians central.

The recent exchange wind-downs and product retirements record companies ending operations. Users, service providers and regulated firms continue migration, withdrawal and operational work as those restructurings proceed.