Signature Bank Crosses $10B in Deposits From Crypto Customers

<div id="node-0" class="article-pharagraph"><p class="text">Deposits from digital currency customers now make up nearly 16% of total deposits at New York’s Signature Bank.&nbsp;</p></div><div id="node-1" class="article-pharagraph"><p class="text">In an earnings call Thursday, Signature revealed that deposits from customers in the crypto industry now total $10 billion –&nbsp;twice that of California rival Silvergate Bank.</p></div><div id="node-2" class="article-pharagraph"><p class="text">“We’ve clearly become the preeminent player in that space,” said Eric Howell, the company’s executive vice president of corporate and business development. “It’s obvious that digital assets and cryptocurrencies are not going away.”</p><div id="node-4" class="article-pharagraph"><p class="text">Signature Bank CEO Joseph DePaolo added that the bank’s blockchain-based payments platform Signet is the main driver of deposit growth in digital asset banking, and that institutional adoption is causing the vertical to “grow by leaps and bounds.” Prominent customers include <a href="https://www.coindesk.com/consensys-polychain-tron-ciphertrace-blockchain-startups-got-18m-in-us-ppp-bailout-loans">Voyager Digital Holdings, Polychain Capital and bitFlyer USA</a>.</p></div><div id="node-5" class="article-pharagraph"><p class="text">Signature banks the “top five crypto exchanges,” DePaolo said, and is now offering retail banking services through them. (Silvergate is known to serve Coinbase, Kraken and Bitstamp. Exchanges often have more than one banking partner in order to more quickly onboard new customers.)</p></div><div id="node-6" class="article-pharagraph"><p class="text">Signature added $2.5 billion in non-interest-bearing deposits in the fourth quarter of 2020, which fell half a billion shy of <a href="https://www.coindesk.com/silvergate-took-nearly-3b-in-deposits-from-digital-currency-customers-in-q4-2020">Silvergate’s $2.9 billion in new deposits from digital currency customers in Q4</a>.</p></div></div>