Anchorage Digital, a federally chartered digital asset bank in the United States valued at $4.2 billion earlier this year, has reduced its global workforce by 17% as the extended weakness in the crypto market continues to pose challenges for industry companies.
CEO announces layoffs impacting 68 employees
According to sources familiar with the situation, CEO Nathan McCauley notified Anchorage staff this week regarding the job cuts. The move affects approximately 68 positions, given the company’s reported global headcount of about 400 employees as of February.
McCauley previously shared these employment figures during his testimony before Congress earlier this year. The reduction signals mounting financial pressures despite Anchorage’s ongoing institutional expansion within the crypto sector.
Anchorage received its national trust charter from the Office of the Comptroller of the Currency in 2021 and has since grown into a major provider of crypto custody services for institutional clients.
Requests for further comment from a public relations representative for Anchorage did not receive an immediate reply at the time of reporting.
Market downturn weighs on digital asset firms
Crypto markets have experienced continued volatility and weakness in the past year. Bitcoin (BTC) temporarily surged above $87,000 on Friday but remains significantly below its all-time high of $126,000 reached last October. Analysts suggest that persistent market challenges have forced many companies, including Anchorage, to reevaluate their operational costs.
Despite these challenges, Anchorage has continued to grow its institutional presence and take on new business within the regulated US crypto ecosystem.
Anchorage expands into stablecoins and investments
The company has recently moved into the stablecoin sector, supporting the issuance of new assets such as Tether‘s US dollar-backed stablecoin USAT. Earlier in the year, Anchorage secured a $100 million strategic investment from Tether, marking a significant partnership between the two companies.
By strengthening its infrastructure and services for institutional clients, Anchorage is attempting to position itself as a key player even as the broader market environment remains uncertain.
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