Earlier this week, lost in the cacophony of the broader banking crisis, Anchorage Digital announced that it was “restructuring” and letting go 75 employees or 20% of its workforce.
Anchorage said their “long-term vision” requires a certain amount of agility as things change. The “strategic realignment” is designed to ” better focus” resources on their mission.
The strategic adjustments we are undertaking have been developed over the course of a several months-long review process and are in response to an evolving landscape facing the crypto industry at-large, shaped by regulatory uncertainty in the U.S., broad macroeconomic challenges, and crypto market volatility. Those combined conditions have resulted in heightened demand for the safe and secure digital asset products and services, which we provide. In fact, our client assets under custody are at an all-time high. However, these same macroeconomic, market, and regulatory dynamics are creating headwinds for our business and the crypto industry.
At the same time, Anchorage continues to advertise open positions – mostly in compliance and risk.
Anchorage Digital, the only federally chartered digital asset bank in the US, is not alone in adjusting to current market conditions. Many Fintechs have slashed their headcounts as the economy slows and the need to preserve capital increases.
Last month, Anchorage announced that it had added Julie L. Williams, former First Senior Deputy Comptroller and Chief Counsel and twice Acting Comptroller of the Currency at the OCC, to serve on its Board of Directors. While the economy sucks, the regulatory environment for digital assets is garnering more scrutiny from the Feds so adding Williams makes a lot of sense.