Things are not going well for Anchorage Digital. The crypto bank just announced a 20% cut in its staff, citing regulatory uncertainty.
On March 14, the bank Anchorage Digital announced the layoff of 20% of its workers due to the crypto winter and regulatory uncertainty in the US.
According to the official statement, the departure of 75 of its employees (approximately 20% of its team) is necessary to focus its resources on other essential processes.
This is the latest development in a series of events that have affected both the banking and the crypto industry as a whole. 2023 has been marked by the closures of three major banks —and the second-largest bank collapse in US history— along with a continuation of the crypto winter that has brought a lot of pain in the whole blockchain ecosystem, from crypto native businesses like Dapper Labs and Huobi to real behemoths such as Meta.
Anchorage Digital is the only federally licensed crypto bank in the United States.
Focusing on What Truly Matters
The executives at Anchorage emphasized that “this should in no way be viewed as a reflection on the contributions of those who are leaving,” as they are immensely grateful for the support they have received from their employees and are committed to helping them during the transition.
“This restructuring is aimed at fueling the parts of our business that are most essential to our clients 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 asset holders.
They also announced that their clients’ operations would not be affected by the layoff, as they have been planning strategic adjustments for several months to avoid any inconvenience.
Despite the significant reduction in workforce, Anchorage Digital affirmed that its services are in perfect condition, reaching new historical highs. However, they know that regulatory uncertainty and the country’s economic problems could affect the bank’s performance.
Anchorage Digital Expands Its Bank Management Team
In late January 2023, Anchorage Bank announced that it hired eight new executives to boost its growth while complying with regulatory requirements.
Nathan McCauley, CEO of Anchorage Digital Bank, said that recent market events have confirmed something they have believed for a long time: that security and regulation are key to increasing trust in the crypto economy. The company promoted the addition of these new members as its “latest step in our longstanding commitment to compliant, secure-by-design digital asset banking.”
Although it is worth noting that despite the layoffs, Anchorage Digital is one of the few banks that can currently claim that its services have reached historical highs. In contrast, others, such as Silvergate Bank, have had to close their positions due to liquidity problems.