Crypto Custodian Anchorage Digital Downsizes by 17% Amid Market Squeeze

Anchorage Digital, one of the few federally chartered crypto banks in the United States, has laid off about 17% of its workforce, according to a report. The job cuts, which affect approximately 75 employees, come as the broader digital asset industry continues to grapple with depressed prices, regulatory uncertainty, and a pullback in institutional appetite.

Strategic Realignment Under Pressure

The bank confirmed the reduction in a statement, framing it as a necessary step to “align resources with the most impactful opportunities” while maintaining its custody, staking, and trading services. Anchorage had previously grown rapidly during the 2021 bull market, swelling to over 400 staff. The latest move mirrors a wider trend among crypto-native financial firms that expanded too quickly and are now retrenching.

Industry-Wide Pullback

Anchorage is far from alone. Other major crypto lenders, exchanges, and custodians have shed headcount over the past 18 months. Notable cutbacks include:

• Coinbase reducing its workforce by roughly 20% in a two-part restructuring
• Kraken laying off 30% of staff in late 2022
• Blockchain.com cutting a quarter of its team

Despite the bleak news, Anchorage remains one of the best-capitalized players in the custody space, boasting a $4.2 billion valuation in its last funding round. The bank’s management emphasized that the layoffs do not signal a pivot away from its core mission of bridging traditional finance with digital assets.

“The long-term thesis for regulated crypto custody is still intact,” said a source close to the company. “But near-term, everyone is tightening belts.”

Industry observers note that as long as crypto prices stay range-bound and U.S. regulators continue a patchwork approach, more layoffs may be inevitable. For now, Anchorage is betting that leaner operations will help it weather the storm until institutional interest returns.