Amid the ongoing volatility in the market, Signature Bank, known for supporting crypto clients, seems to be slowly changing its stance on crypto as it has introduced caps to shrink crypto-tied deposits by $8 billion to $10 billion.
The bank is aiming to reduce the concentration of deposits from clients in the crypto industry to below 20% of the total bank deposits. In an email to clients from group director Joseph Seibert, it was mentioned that the bank would adopt a per-client deposit cap of at most 2% of total bank deposits.
Seibert further clarified that the cap would be $2 billion per client. He also mentioned that with deposits ending the third quarter at $102 billion, the move would cap total deposits for the entire digital ecosystem at $20.4 billion.
The news first broke out when CEO Joe DePaolo announced it would reduce deposits from the crypto industry at a Tuesday event in New York. The bank stated it expected the strategy to impact a “minimal amount” of clients that have already been notified.
In addition, this step would allow the bank to utilize capital more strategically. Seibert emphasized that the bank would continue to invest resources in this space and expect growth to continue over the coming years as it continues to strive to be the preeminent bank in servicing the digital asset industry.
While Signature Bank is limiting crypto-related deposits considering present market conditions, Nigeria is moving forward to promote its CBDC eNaira. Yesterday, the Nigerian government banned weekly ATM withdrawals exceeding $225 to increase the use of CBDC.
