A $4.2 billion valuation and a fresh $100 million cash injection have proven to be no shield against layoffs. Anchorage Digital, the first crypto bank to secure a federal charter in the United States, reportedly cut 17% of its workforce over the past week.
The company’s CEO announced the cost-cutting measure directly to staff. According to data from a congressional hearing last February, Anchorage employed around 400 people globally. With a 17% reduction rate, approximately 68 positions across various divisions were officially eliminated. The report frames Anchorage’s downsizing against the backdrop of a prolonged crypto market downturn.
The market has indeed been under pressure. Although Bitcoin’s price briefly rebounded above the $87,000 mark, that figure remains far below its peak of $126,000 reached in October 2025. Slowing industry conditions prompted management to take the austerity route.
Money In, Employees Out
The layoffs have raised eyebrows as they occurred right after the company received substantial capital. Tether Investments recently injected $100 million in strategic funding into Anchorage. The capital injection was intended to expand the scope of the close partnership already established between the two parties.
Anchorage plays a central role in Tether’s ecosystem. Operating under the regulatory supervision of the Office of the Comptroller of the Currency (OCC) since January 2021, the bank serves as the issuer of USAT - a domestic dollar stablecoin tailored specifically for the US market.
USAT made its debut on January 27, designed to comply with the GENIUS Act federal stablecoin legislative framework. The token’s initial ecosystem involves Cantor Fitzgerald as reserve custodian, with distribution network support from major crypto exchanges such as Bybit, Crypto.com, Kraken, OKX, and payment provider MoonPay.
Infrastructure Moves Ahead
The staff cuts have evidently not stopped the company’s tech expansion roadmap. On September 22, Anchorage announced a cross-chain stablecoin infrastructure collaboration with the LayerZero protocol. This technical initiative runs parallel to the launch of new products aimed at institutional players.
However, a string of product milestones and elite regulatory status do not automatically safeguard workers on the ground. For the 68 people who lost their jobs this week, the reality of the crypto business has once again demonstrated its classic pattern: even a multi-billion-dollar valuation won’t stop pink slips when management demands cost efficiency.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
