It’s unclear whether Anchorage Digital’s layoffs relate to the current turmoil in the U.S. banking sector.
Crypto bank Anchorage Digital has announced that it will lay off 75 employees, representing about 20% of its workforce, citing the uncertain situation in the United States as the reason for its decision.
In a March 14 statement, Anchorage called the layoffs “a strategic plan to better focus our resources” and pointed to “major macroeconomic challenges and changes in the crypto market” as other factors contributing to the changes in strategy. . He said market conditions had boosted demand for his products and his client assets were at “all-time highs”, but added:
“These macroeconomic, market and regulatory trends create a headwind for our business in the crypto industry.”
Anchorage – which became the first crypto company from the US to receive the National Trusted Banking Charter from the Office of the Comptroller of the Currency in January 2021 – demonstrated its continued confidence in the digital asset sector and its ability to create “something optimized for digital owners of property.”
The bailout comes at a time when the US banking system is in turmoil after three regional banks failed in just one week.
Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank have gone bankrupt since March 8, prompting the Federal Deposit Insurance Corporation (FDIC) to take a special step that guarantees all customer deposits above the standard $250,000 and it -guarantee for SVB and signature. It’s unclear whether recent developments involving SVB, Signature and Silvergate contributed to Anchorage’s decision to downsize.
Anchorage did not immediately respond to Cointelegraph’s request for comment. Layoffs in the crypto industry have decreased significantly since the beginning of the year when the reduction of almost 3,000 jobs of crypto companies such as the crypto exchange Coinbase and crypto.com in January was another 570 layoffs with tact in February.
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