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New York-based Signature Bank has recently revealed that they have received more than $10B deposits from their crypto customers. The bank has reported this on Thursday and stated that around 16% of the total deposits are from digital assets customers.
Eric Howell, executive vice president of the Signature Bank, has said that their bank has become quite prominent in the crypto space.
Signature Bank Signet Has Caused Such Huge Deposit Growth
Joseph DePaolo, CEO of the Signature Bank, has said that Signet, their blockchain-based payments platform, has played a major role behind this deposit growth from the crypto customers. Along with this, he also mentioned that mainstream adoption by institutional investors has also contributed to this. It is revealed that the number of deposits of the bank from the crypto customers is twice as compared to that of Silvergate bank.
The Signature Bank also provides financial assistance to the top five crypto exchanges of the region. The bank is also offering retail banking services to its clients through those exchanges. In the fourth quarter of 2020, the bank has added $2.5 billion in its non-interest-bearing deposits.
Non-Interest-Bearing Deposits Represents 30% of Total Bank Deposit
The analysts are paying very close attention to the non-interest-bearing deposits of the bank as crypto firms are a major source of low-cost deposits for the banks. The Signature Bank does not reveal the deposits from its crypto customers in its financial statements and this is the reason why it is a major focus. It is revealed that currently, the bank is having 30% of the non-interest-bearing deposit, out of its total deposit. It is not only Signature Bank, but other banks have also seen an increase in the total number of crypto deposits. The major reason behind this is because there has been huge crypto adoption across the world in the past few months. Ultimately, such an increase in adoption will lead to an increase in deposits as well.