Crypto bank Anchorage Digital announced that it would reduce its workforce by 20%, accounting for 75 employees.
The U.S.-based bank cited regulatory uncertainty in the country, macroeconomic challenges, and crypto market volatility while explaining its decision.
- Anchorage Digital said the market conditions are creating headwinds for its business and crypto industry, though the same dynamics increased demand for its products.
- The bank underlined that client assets under its custody reached the highest levels ever.
- The firm also stressed that it is still confident in the future of digital assets.
- The move came amid a turbulent environment in the crypto industry as three crypto-friendly banks, Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank, collapsed consecutively within just a week.
- With the latest move, Anchorage Digital joined other crypto-related firms, including Coinbase, Crypto.com, Huobi, Chainalysis, Kraken, and Gemini, announcing mass layoffs.
- Last year, many crypto firms had to cut their headcount due to the crypto winter that heightened mainly with the impact of Terra and FTX’s collapse.
- Mass layoffs in the crypto industry slowed down in February this year with 570 people, down from 3,000 employees in January.
