- Signature Bank ( NASDAQ: SBNY ) on Thursday issued a mid-Q1 financial update , with its spot deposit balances lower by ~$826M, driven by continued decline in cryptocurrency client related deposits.
- This is in line with its shift in strategy as the bank limits its crypto deposit exposure.
- Crypto client related deposits declined $1.51B so far in Q1. Excluding such balances, deposits increased $682M quarter-to-date.
- Average deposit balance QTD is $88.79B, compared with $88.59B at December 31, 2022 and $98.6B at Q4-end.
- Spot loan balances shrank by ~$1.71B so far in Q1 as Signature ( SBNY ) continues to reduce loan balances in its larger business lines.
- The bank reiterated that it does not trade, custody, or lend against/make loans collateralized by cryptos.
- Earlier, crypto exchange Kraken reportedly stopped using Signature ( SBNY ) for dollar deposits and withdrawals .
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Signature Bank spot deposit balances shrink so far in Q1 on lower crypto related deposits