Anchorage Digital Cuts 17% of Staff After Expansion Push

Anchorage Digital has reduced its workforce by 17%, marking a significant cost-cutting move just months after achieving a $4.2 billion valuation through a $100 million investment from Tether. CEO Nathan McCauley announced the layoffs, affecting approximately 68 employees based on the company’s reported headcount from 2025. While the exact business units impacted remain undisclosed, the cuts follow a period of expansion in stablecoin issuance and institutional custody services.

The layoffs come amid a prolonged downturn in digital asset markets, though Anchorage has not publicly disclosed how these conditions have affected its revenue or custody operations. The company’s business model spans custody, staking, settlement, trading infrastructure, and stablecoin services, meaning its financial performance depends on various factors beyond just asset values.

Anchorage has previously reduced staff in 2023 due to banking relationship challenges, but its regulatory standing has since improved. The Office of the Comptroller of the Currency lifted a compliance-related consent order in 2025 after addressing deficiencies in its anti-money-laundering framework. The company continues to expand its product offerings, including stablecoin infrastructure for international banks and custody services for assets like Etherlink and Tezos-based products.

Tether’s investment in February valued Anchorage at $4.2 billion and included a liquidity offer for employees, reflecting a strategic partnership rather than a passive financial investment. The company’s future hinges on whether its newer stablecoin and institutional products can generate enough recurring revenue to offset cyclical market pressures.