BitGo lays off almost 15% of staff, focuses on stablecoins and AI

Crypto custody platform BitGo is cutting nearly 15% of its workforce. CEO Mike Belshe announced the decision himself and explained why the company is taking this step: the ecosystem is changing rapidly and BitGo needs to become sharper to remain relevant to its clients.

A difficult but deliberate choice

Belshe is straightforward about the reason for the layoffs. The way financial services are built is changing dramatically, and BitGo wants to focus its people and energy on the areas that matter most. According to the CEO, these are five core areas: security, trading, stablecoins, settlement and AI-based infrastructure.

The affected employees have already been personally informed by management and the HR department. Belshe states that this is a one-off intervention and that no further rounds of layoffs are expected at this time. The company wants to move forward with a smaller but more focused team.

Stablecoins and AI as new focal points

The shift towards stablecoins fits into a broader trend within the crypto industry. More and more major players are focusing on stablecoin news and developments as a growth engine for their business. BitGo now appears to be following that line emphatically by making it one of its strategic focus areas.

Consolidation is also visible elsewhere in the sector. For instance, the CEO of Coinbase wants to make more acquisitions after a $29 billion deal to grow further. BitGo, for now, is taking a different approach by cutting internally and sharpening its focus rather than expanding externally.