Anchorage Digital, a United States federally chartered digital asset bank valued at $4.2 billion earlier this year, has reduced its global workforce by approximately 17 percent. The move comes amid ongoing pressure from prolonged weakness in cryptocurrency markets, even as the firm continues to expand its institutional offerings.

Chief Executive Officer Nathan McCauley notified employees of the reductions this week, according to people familiar with the matter. Anchorage reported a global headcount of about 400 employees as of February, based on McCauley’s testimony before Congress at that time. A 17 percent cut applied to that figure would affect around 68 positions, assuming staffing levels remained near the earlier total.

Market Pressures Drive Operational Adjustments

Cryptocurrency markets have faced sustained volatility and declines over the past year. Bitcoin briefly moved above $87,000 on Friday but stayed well below its peak of $126,000 reached in October of the prior year. Industry participants have cited these conditions as a factor prompting digital asset firms to reassess costs and staffing.

Anchorage has not issued an immediate public statement on the workforce changes. Requests for comment directed to a public relations representative for the company did not receive a response at the time of the reports.

Continued Expansion in Regulated Services

Despite the staffing reductions, Anchorage has maintained growth in its regulated activities. The firm became the first crypto company to receive a national trust charter from the Office of the Comptroller of the Currency in 2021 and has developed into a significant provider of custody services for institutional clients.

More recently, the bank has entered the stablecoin sector. It supports the issuance of Tether’s US dollar-backed stablecoin USAT. Earlier this year, Anchorage secured a $100 million strategic equity investment from Tether. That investment followed the companies’ existing collaboration on USAT, which launched in late January under Anchorage Digital Bank as the legal issuer.

Additional developments include a September partnership with LayerZero to supply cross-chain infrastructure for stablecoins issued through Anchorage’s platform, with USAT identified as an initial token. The bank also expanded custody support for assets on the Etherlink network, covering tokens that include wrapped Ether and a representation of physical uranium.

The combination of cost adjustments and continued product development positions the firm to navigate uncertain market conditions while serving regulated digital asset needs in the United States.