Anchorage Digital, a federally chartered US digital asset bank valued at $4.2 billion earlier this year, has reportedly cut 17% of its workforce. The move indicates that the ongoing crypto market downturn is impacting the company, even as it continues to expand its institutional footprint.
According to a report by The Information citing sources familiar with the matter, CEO Nathan McCauley informed employees of the layoffs. Based on congressional testimony provided by McCauley in February, Anchorage had approximately 400 global employees at that time, making a 17% reduction equal to roughly 68 jobs if headcount remained consistent.
The broader cryptocurrency market has faced struggles over the past year. For context, Bitcoin recently recovered above $87,000 on Friday but remains below its October peak of $126,000.
The workforce reduction arrives alongside Anchorage's continued expansion within the regulated US crypto sector. In 2021, the company became the first crypto firm to secure a national trust charter from the Office of the Comptroller of the Currency, establishing itself as a prominent custodian.
Additionally, Anchorage has ventured into stablecoin issuance, participating in Tether's new US stablecoin, USAT. The company also secured a $100 million strategic investment from Tether earlier this year.
