Anchorage Digital, the only federally chartered crypto-focused national trust bank in the United States, is cutting about 17% of its workforce as it confronts sector-wide cost pressures, The Information reported Friday, citing people familiar with the matter. Chief executive Nathan McCauley informed employees of the cuts this week.
Roughly one in six roles
The reduction affects about one in six employees at the digital asset platform, though the company has not attached an exact headcount to the 17% figure. Anchorage employed roughly 400 people globally as of February, according to McCauley’s congressional testimony at the time, which would put the cuts at around 68 jobs if headcount had stayed near that level. The company tied the decision to cost pressures across the industry rather than to any single event or business line, and the move is being described as part of a broader restructuring. Which teams are affected, and whether any business units are being wound down, has not been disclosed.
A uniquely chartered custodian
The layoffs land at an institution that occupies an unusual spot in crypto. Anchorage received the first federal trust bank charter for a digital asset company from the Office of the Comptroller of the Currency in January 2021 and holds additional licenses in jurisdictions including New York and Singapore. Its valuation climbed to $4.2 billion in February after a $100 million strategic investment from Tether, and the bank has continued to expand its stablecoin work, most recently selecting LayerZero for cross-chain stablecoin interoperability in late September.
A second round of cuts
This is not Anchorage’s first reduction. On March 14, 2023, the company laid off about 75 employees, roughly 20% of staff at the time, following a strategic review that sharpened its focus on institutional custody and regulated services. Its banking arm, Anchorage Digital Bank N.A., was not affected by the 2023 cuts, and the company has not said whether the bank is touched by the latest round. The 2023 reduction landed during a rough stretch for crypto-friendly banking, when Silvergate, Signature, and Silicon Valley Bank all shut down.
The cuts echo a broader cost-cutting wave across the sector, even as institutions such as Tether and Fasanara push into stablecoin private credit. Anchorage has not pointed to a lost client or a regulatory setback; it has pointed to the sector. Key signals to track in the coming months include any update on assets under custody, details on which teams were affected, and whether the banking subsidiary’s operations change.
