Anchorage Digital, a federally chartered US digital asset bank valued at $4.2 billion earlier this year, has reportedly cut 17% of its workforce, suggesting that the prolonged crypto market downturn is weighing on the company even as it expands its institutional footprint.
Citing people familiar with the matter, The Information reported Friday that CEO Nathan McCauley informed employees of the cuts this week. Anchorage had about 400 employees globally as of February, according to McCauley’s congressional testimony at the time, meaning a 17% reduction would amount to roughly 68 jobs if its headcount remained around that level.
Cointelegraph reached out to a public relations contact representing Anchorage for confirmation but did not receive an immediate response.
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Crypto markets have struggled over the past year, which The Information cited as the backdrop for Anchorage’s workforce reduction. Bitcoin (BTC) briefly recovered above $87,000 on Friday but remains well below its $126,000 peak reached last October.
The layoffs come as Anchorage has expanded its role in the regulated US crypto industry. The company became the first crypto company to receive a national trust charter from the Office of the Comptroller of the Currency in 2021 and has since grown into a major crypto custodian.
More recently, Anchorage has expanded into stablecoin issuance, including Tether’s new US stablecoin USAT. Earlier this year, the company received a $100 million strategic investment from Tether.