Anchorage Digital Lays Off 17% of Workforce Amid Prolonged Crypto Market Downturn

Anchorage Digital, a federally chartered US digital asset bank valued at $4.2 billion, has laid off 17% of its workforce, affecting roughly 68 employees. This move comes as the company expands its institutional footprint in the regulated US crypto industry.

The layoffs were reportedly informed to employees by CEO Nathan McCauley this week, citing the prolonged crypto market downturn as the reason for the cuts. Anchorage Digital had about 400 employees globally as of February, according to McCauley's congressional testimony.

The company has been expanding its role in the regulated US crypto industry, including becoming the first crypto company to receive a national trust charter from the Office of the Comptroller of the Currency in 2021. It has since grown into a major crypto custodian and recently expanded into stablecoin issuance, including Tether's new US stablecoin USAT.