Signature Bank continued to limit exposure to cryptocurrency deposits in the first quarter, with deposits decreasing by approximately $826 million

2023-03-03 12:29:56

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ChainCatcher news, the crypto-friendly bank Signature Bank released its mid-quarter financial update for Q1 2023 on Thursday. Due to regulatory and market factors, the bank has limited its exposure to cryptocurrency deposits, and deposits related to cryptocurrency clients have continued to decline, with its spot deposit balance decreasing by approximately $826 million.

So far, deposits related to cryptocurrency clients have decreased by $1.5 billion in the first quarter. As Signature continues to reduce the loan balances of its larger business lines, the spot loan balance has decreased by $1.71 billion so far in the first quarter. The bank reiterated that it will not engage in trading, custody, or lending/ providing loans secured by cryptocurrency.

Previous report In December last year, Signature Bank announced it would reduce cryptocurrency deposits by up to $10 billion, ultimately reducing crypto deposits from 23.5% to below 15%. However, recent clients such as Coinbase, previously with Silvergate, have turned to Signature. (Source link)

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