Uphold, the digital asset trading platform, has announced a 17% reduction in its global workforce as part of a strategic realignment towards its burgeoning enterprise segment.
The layoffs aim to enhance the company's focus on its growing enterprise business.
In total, 85 positions were affected, encompassing both permanent employees and contractors. The decision to downsize was influenced by a noticeable decline in retail crypto trading activity, prompting the company to pivot its resources to better serve banks, fintechs, and broker-dealers where demand remains strong.
CEO Simon McLoughlin expressed confidence in the future of digital assets despite the current market downturn, stating, "We’re recalibrating after several years of extraordinary growth, during which we nearly doubled our headcount. Despite the current slowdown in crypto trading activity, we’ve never been more confident in the prospects for digital assets and blockchain technology."
Founded in 2015 and headquartered in New York City, Uphold is a platform that allows both retail and institutional clients to trade cryptocurrencies, fiat currencies, stocks, and precious metals from a single account. The company has recently expanded its offerings beyond consumer trading, developing infrastructure that allows financial institutions to integrate crypto trading and custody services.
These layoffs occur as the cryptocurrency market faces a prolonged downturn, with total market capitalization dropping to approximately $2.1 trillion at the end of the second quarter. This decline followed three consecutive quarters of losses, coinciding with reduced trading volumes and retail participation due to rising interest rates and geopolitical uncertainties.
In May and June, U.S. spot bitcoin ETFs experienced net outflows totaling $6.9 billion. Although there has been a modest recovery in July, including a brief period of inflows, it remains insufficient compared to the withdrawals seen earlier in the market downturn.
Uphold confirmed that it will not be closing its U.K. operations or any international offices, assuring that all locations will continue to operate normally. The firm’s enterprise platform is witnessing rapid growth, allowing banks and financial service providers to offer digital asset services to their clients.
The shift in focus toward enterprise products was deemed necessary due to the combination of declining retail demand and the momentum in enterprise business. Uphold anticipates further growth announcements in the upcoming months. McLoughlin also mentioned plans to enhance their consumer app, which will evolve into a multi-asset, blockchain-enabled financial companion by the end of 2026, offering a variety of new features including U.S. stocks, tokenized securities, and enhanced DeFi yield opportunities on assets like XRP.