Anchorage Digital Cuts 17% of Workforce Amid Crypto Market Downturn

Anchorage Digital, a leading crypto custodian and federally regulated issuer, has laid off approximately 17% of its global workforce, citing a year-long downturn in crypto markets. According to CEO Nathan McCauley, the cuts are aimed at restructuring the company while maintaining its custody services. With a global headcount of around 400 employees, the reduction represents roughly 68 positions, mostly likely within the company's custody and stablecoin-related businesses.

Anchorage continues to expand its stablecoin issuance, including the USAT and USDPT, a U.S. dollar-backed stablecoin issued by Anchorage Digital Bank in collaboration with Tether. The company's national trust charter from the Office of the Comptroller of the Currency (OCC) remains intact, allowing it to maintain custody services while undergoing restructuring. The reasons behind the layoffs are unclear, but the move is seen as a cost-management measure to manage the current crypto-market downturn.

As part of the broader crypto sector, Anchorage's workforce reduction follows a series of layoffs across the industry, including Coinbase, Gemini, and BitGo. While the exact reasons behind the cuts vary, the industry is experiencing a leaner cost base as companies wait for market activity to recover.