US-based online payments firm Bolt Financial has terminated its deal to buy cryptocurrency infrastructure platform Wyre for $1.5bn.

This move comes at a time when the crypto and fintech industries are witnessing a dip in their valuations.

The cancelled deal, which was announced in April this year, aimed at providing shoppers, retailers, and developers with mainstream and safe cryptocurrency solutions.

Following a fundraising round in January this year, Bolt’s valuation reached $11bn. Even so, tech valuations have since taken a toll amid investor sentiments struck by fears of recession and a bleak atmosphere in the equity markets.

Meanwhile, Bolt stated that it would continue its alliance with Wyre. The firm also noted that operating as an independent entity will enable it to concentrate on its core operations.

Bolt CEO Maju Kuruvilla said: “We will continue our existing commercial partnership with Wyre to pave the path of crypto integration into our ecosystem, bringing Wyre’s innovative crypto infrastructure to the world.”

In May this year, a report stated that Bolt is intends to cut nearly one-third of its employee headcount as part of a strategy to restructure its operations.

According to the Bloomberg report, the company plans to lay off around 250 people, with the firm already having begun meetings with its staffs to carry out the plan.