Cryptobank Anchorage Digital has announced that it will lay off 75 employees, representing approximately 20% of its workforce, citing regulatory uncertainty in the United States as a factor in its decision.
On March 14 declaration he called the layoffs a “strategic realignment to better focus our resources” and pointed to “broad macroeconomic challenges and crypto market volatility” as other factors contributing to the shift in strategy.
It said market conditions had increased demand for its product and client assets under custody “are at an all-time high”, but added:
“The same macroeconomic, market and regulatory dynamics are creating headwinds for our business and the crypto industry.”
Anchorage – which became the first US-based crypto firm granted the charter of a national trust bank from the Office of the Comptroller of the Currency in January 2021 — expressed continued confidence in the digital asset landscape and its ability to create “regulated solutions for digital asset holders.”
The layoffs come as the U.S. banking system is in a state of chaos after three regional banks failed in just one week.
Related: Banks are collapsing; Debugging Stablecoins — What’s going on? Watch The Market Report live
Silicon Valley Bank (SVB), Silvergate Bankand Signature Bank all have lapsed since March 8, prompting the Federal Deposit Insurance Corporation (FDIC) to take the extraordinary step of guaranteeing all customer deposits above the standard $250,000 it normally guarantees for SVB and Signature.
@federalreserve @USTreasury @FDICgov issue a statement on measures to protect the U.S. economy by strengthening public confidence in our banking system and ensuring that depositors’ savings remain safe: https://t.co/YISeTdFPrO
— Federal Reserve (@federalreserve) March 12, 2023
It is unclear whether recent developments regarding SVB, Signature and Silvergate contributed to Anchorage’s decision to cut staff.
Anchorage did not immediately respond to Cointelegraph’s request for comment.
Layoffs in the crypto industry have almost slowed since the beginning of the year 3,000 positions discontinued by crypto firms as crypto exchanges Coinbase and crypto.com followed more muted in January 570 layoffs for February.