Anchorage Digital Cuts 17% of Staff Amid Cryptocurrency Market Downturn

Anchorage Digital, a US-licensed digital asset bank, has laid off approximately 17% of its staff, according to an internal memo from CEO Nathan McCauley. The company had valued at $4.2 billion earlier this year and employs around 400 people globally, which means the layoffs affect about 68 positions. This downsizing comes amidst a prolonged downturn in the cryptocurrency market.

Anchorage has been expanding its presence in the regulated US crypto space, having become the first digital asset company to obtain a national trust charter from the Office of the Comptroller of the Currency (OCC) in 2021. It has since grown into a major crypto custodian and recently ventured into stablecoin issuance, including partnering with Tether on its new US dollar-backed stablecoin, USAT.

The company's valuation was $4.2 billion at its peak earlier this year, following a strategic investment of $1 billion from Tether in the first quarter.