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Anchorage Digital Reduces Workforce by 17% Amid Industry Challenges
Anchorage Digital, a federally chartered crypto custodian based in the United States, has announced a reduction of approximately 17% of its workforce due to ongoing cost pressures affecting the entire cryptocurrency sector. This decision impacts roughly one in six employees at the digital asset platform, although the company has not disclosed the exact number of layoffs.
This latest round of cuts follows a previous layoff in March 2023, when Anchorage Digital reduced its staff by about 20%, or 75 employees, as part of a strategic review aimed at focusing on institutional custody and regulated services. At that time, the company cited regulatory uncertainty, a challenging macroeconomic environment, and volatility in crypto markets as contributing factors to its decision.
Anchorage Digital, which holds a unique position as the only federally chartered crypto-focused national trust bank in the U.S., received its charter in January 2021. The company also holds regulatory licenses in various jurisdictions, including Singapore and New York. Despite the layoffs, Anchorage reported record levels of client assets under custody in 2023, indicating resilience in its core business operations. The impact of the current layoffs on its banking subsidiary, Anchorage Digital Bank N.A., remains unclear.
Source: KLEA News