Anchorage Digital Cuts 17% of Staff Despite Tether Investment
Anchorage Digital laid off approximately 17% of its workforce in early October, The Information reported, citing people familiar with the matter. The reduction follows a $100 million Tether investment and comes as the custodian expands its institutional settlement business.
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Story Updates
- Updated Oct 6, 2026, 02:03 AM: Anchorage Digital expanding institutional settlement business alongside layoff reduction.
Layoff Details and Timing
Anchorage Digital cut about 17% of its staff in early October, according to The Information, which cited people familiar with the matter. CEO Dileep Rao informed employees of the reduction. The exact number of affected employees was not disclosed, though the 17% figure appears consistent across reporting. The cuts occurred despite the custody platform securing a $100 million investment from Tether earlier in 2024.
Expansion Amid Reductions
The layoffs come as Anchorage expands its institutional settlement business, according to The Defiant. The apparent contradiction—simultaneous cost cuts and business expansion—suggests the company is prioritizing certain units over others as it adjusts to market conditions. The timing indicates that the Tether capital infusion did not prevent headcount reductions despite new operational initiatives.
Sector Context
The move reflects ongoing financial strain across crypto companies. Multiple platforms and protocol teams have announced similar workforce reductions throughout 2024 as trading volumes and institutional activity remain below their 2021 peaks. Cost rationalization has become a recurring theme among firms that scaled aggressively during the 2021 bull market.
Why It Matters
For Traders
Custody provider consolidation may tighten options for large institutional settlement and wallet management in the near term.
For Investors
Venture funding has not stabilized crypto infrastructure economics; companies continue cutting costs despite capital raises.
For Builders
Custody and settlement service availability may narrow further as providers rationalize; protocols should audit provider redundancy.
This article is for information only and is not financial advice. Read the full disclaimer.
