Crypto Bank Anchorage Digital to lay off 20% of workforce

On March 14, the bank Anchorage Digital announced layoffs of 20% of its workers due to the crypto winter and regulatory uncertainty in the United States.

According to the official statement, the departure of 75 employees (about 20% of the team) is necessary to focus resources on other important processes.

This is the latest development in a series of events that have affected both the banking and crypto industry as a whole. 2023 has been marked by the closure of three major banks – and the second largest bank collapse in US history – along with a continuation of the crypto winter that has brought much pain throughout the blockchain ecosystem, from cryptonative businesses like Dapper Labs and Huobi to true behemoths like Meta.

Anchorage Digital is the only federally licensed crypto bank in the United States.

Focus on what really matters

Anchorage executives stressed that “this should in no way be seen as a reflection on the contributions of those leaving,” as they are incredibly grateful for the support they have received from their employees and are committed to helping them during the transition.

“This restructuring is aimed at energizing the parts of our business that are most essential to our customers in the current and anticipated marketplace.” In doing so, Anchorage Digital will be able to serve the growing demand to build regulated solutions for digital assets.

They also announced that their customers’ operations would not be affected by the layoffs, as they have been planning strategic adjustments for months to avoid any inconvenience.

Despite the significant reduction in its workforce, Anchorage Digital confirmed that its services are in perfect condition, reaching new historic highs. However, they know that regulatory uncertainty and the country’s economic problems can affect the bank’s results.

Anchorage Digital expands bank management

In late January 2023, Anchorage Bank announced that it was hiring eight new executives to accelerate growth while complying with regulatory requirements.

Nathan McCauley, CEO of Anchorage Digital Bank, said recent market events have confirmed something they’ve long believed: that security and regulation are key to increasing confidence in the crypto-economy. The company promoted the addition of these new members as the “latest step in our long-standing commitment to compliant, secure-by-design digital asset banking.”

Although it’s worth noting that despite the layoffs, Anchorage Digital is one of the few banks that can for now claim that services have reached historic highs. In contrast, others, such as Silvergate Bank, have had to close their positions due to liquidity problems.