Signature Bank (SBNY) will shrink its deposits tied to cryptocurrencies by $8 billion to $10 billion, signaling a move away from the digital asset industry for the bank that until recently had been one of the most crypto-friendly companies on Wall Street.
“We are not just a crypto bank and we want that to come across loud and clear,” Signature Bank’s CEO Joe DePaolo said at an investor conference in New York hosted by Goldman Sachs Group Inc. on Tuesday.
FTX was one of the bank’s clients, although the crypto exchange’s deposits with Signature amounted to less than 0.1% of the bank’s overall deposits. Still, the relationship between the two caused Signature’s shares to drop almost 20% in November.
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