TechFlow News — Signature Bank (SBNY), one of Wall Street’s most crypto-friendly banks, plans to reduce its cryptocurrency-related deposits by $8 billion to $10 billion.
As of September 2022, nearly a quarter (about 23.5%) of the New York-based bank’s total $103 billion in deposits came from the crypto industry. However, due to recent “issues” in the sector, Signature intends to lower that share to less than 15%.
FTX was among the bank’s clients. Although FTX’s deposits accounted for less than 0.1% of Signature’s total deposits, the association contributed to a nearly 20% drop in Signature’s stock price in November.
Additionally, Signature Bank CEO Joe DePaolo specifically highlighted stablecoins as an area the bank aims to exit—potentially bad news for Circle and other stablecoin issuers. Circle added Signature last April as a leading depository institution for USDC reserves.Source link
