Anchorage Digital Reportedly Cuts 17% of Staff as Crypto Downturn Drags On

Anchorage Digital, a federally chartered US digital asset bank valued at $4.2 billion earlier this year, has reportedly laid off 17% of its employees. According to a Friday report citing people familiar with the matter, CEO Nathan McCauley told staff about the cuts this week. The company had roughly 400 employees worldwide as of February, based on McCauley’s congressional testimony, so the reduction would equal about 68 jobs if headcount stayed near that level. Anchorage had not responded to a request for confirmation at the time of reporting.

Crypto Market Downturn Weighs on the Industry

The report points to a prolonged slump in crypto markets as the backdrop. Bitcoin briefly climbed above $87,000 on Friday but still sits well under its $126,000 peak from last October.

Anchorage’s Growing Role in Regulated US Crypto

The cuts come even as the firm widens its institutional reach. In 2021, Anchorage became the first crypto company to win a national trust charter from the Office of the Comptroller of the Currency, and it has since grown into a leading crypto custodian. It has also moved into stablecoin issuance, including Tether’s new US stablecoin USAT, and received a $100 million strategic investment from Tether earlier this year.