Crypto-friendly Federally chartered Bank Anchorage Digital has begun to make certain adjustments due to uncertain regulatory pressures. As a major precautionary measure, it has now decided to dismiss up to 20% of its workforce.
This percentage represents one-fifth of the company’s total workforce. It is suspected that this layoff may be connected to the recent shakeup in the United States financial ecosystem especially as Anchorage Digital has not specified the regulatory uncertainties it is faced with.
The firm mentioned that this decision was made as part of its strategy to accommodate its long-term vision.
As expected, certain changes would occur in tandem with changing economic, marketplace, and regulatory conditions
“Today we are announcing that we will be initiating a strategic realignment to better focus our resources. That process includes the difficult but necessary decision to reduce our headcount,” Anchorage Digital said in a statement published recently.
Dealing With Harsh Market Conditions
The American crypto-focused financial institution cited broad macroeconomic challenges as well as crypto market volatility which is a concern to several digital assets enthusiasts. The combination of all of these factors gave rise to a higher demand for more secure digital assets products and services.
On one hand, these factors have proven to be beneficial to Anchorage Digital as its assets under custody are currently at an all-time high. However, it also poses a problem for the crypto industry at large, hence, the recent instability. Ethereum scaling protocol Polygon Labs had to let go of 100 employees last month owing to the crypto winter which began drilling into the industry in 2022.
The retrenchment exercise cut across all of the company’s team. Polygon Labs reiterated the need to make adjustments amidst the global crypto harsh market conditions. Shortly after, the Non-fungible token (NFT) company behind CryptoKitties, Dapper Labs went through a 20% staff cutback due to the ongoing economic meltdown. It is noteworthy that at that point, Dapper Labs had no outstanding debts.
Moreso, the U.S. financial ecosystem has been in a tangle recently and this has led to the collapse of Silvergate Bank, Signature Bank, and Silicon Valley Bank.
