Crypto bank Anchorage Digital stated it would be letting go of 75 people, representing around 20% of its employment, citing regulatory uncertainty in the United States as a factor in its decision.
Anchorage described the layoffs as “a strategic realignment to better focus our resources” in a March 14 statement, citing “broad macroeconomic challenges and crypto market volatility” as other factors contributing to the shift in strategy.
It stated that market conditions had increased demand for its product and that client assets under custody were “at an all-time high,” but it added:
“These same macroeconomic, market, and regulatory dynamics are creating headwinds for our business and the crypto industry.”
Anchorage, the first U.S.-based crypto firm to be granted a national trust bank charter by the Office of the Comptroller of the Currency in January 2021, expressed continued faith in the digital asset landscape and its ability to build “regulated solutions for digital asset holders.”
The layoffs come at a time when the United States banking system is in disarray, following the failure of three regional banks in a single week.
Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank have all gone under since March 8, prompting the Federal Deposit Insurance Corporation (FDIC) to take the extraordinary step of guaranteeing all customer deposits in excess of the standard $250,000 it normally guarantees for SVB and Signature.
It’s unclear if the recent developments regarding SVB, Signature, and Silvergate contributed to Anchorage’s decision to cut staff.
Layoffs in the crypto business have decreased significantly since the beginning of the year, after roughly 3,000 positions were slashed by crypto firms such as Coinbase and crypto.com in January, followed by a more moderate 570 layoffs in February.
