$4.2B crypto bank Anchorage Digital cuts 17% of workforce: Report
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Anchorage Digital, a US federally chartered digital asset bank valued at $4.2 billion earlier this year, has cut 17% of its workforce. CEO Nathan McCauley reportedly informed employees of the layoffs, which could amount to about 68 jobs based on prior headcount figures. These cuts come amid a prolonged crypto market downturn despite the company’s ongoing institutional expansion.
Why it matters
The workforce reduction illustrates how the ongoing crypto market struggles are impacting even major regulated players like Anchorage Digital. However, the source does not elaborate on specific implications for markets, users, or policy beyond this observation.
Key context
Anchorage Digital received the first national trust charter for a crypto company from the Office of the Comptroller of the Currency in 2021 and has since become a significant crypto custodian. The company has also diversified into stablecoin issuance, notably supporting Tether’s USAT stablecoin and secured a $100 million strategic investment from Tether earlier in 2023. The crypto market has experienced substantial volatility, with Bitcoin currently far below its peak from last October.
Key numbers and entities
Anchorage Digital is valued at $4.2 billion. The reported workforce cut is 17%, roughly 68 jobs based on an approximate total of 400 employees. CEO Nathan McCauley communicated the layoffs. Anchorage received a $100 million investment from Tether and supports the USAT stablecoin.
What remains unclear
The company has not provided official confirmation of the layoffs. Details about the specific departments or roles affected, the timeline for the cuts, and how Anchorage plans to adjust its operations following the reduction are not stated. The broader strategic outlook for Anchorage amid the crypto downturn is also not discussed.