crypto friendly signature bank (SBNY) has announced that it will reduce deposits related to crypto assets by $8 billion to $10 billion.
SBNY’s decision shows that banks may be distancing themselves from the crypto industry. SBNY CEO Joe DePaolo commented on the decision, Said:
“We are not just a crypto bank, we want to make that clear.”
The undersigned bank was the only federally regulated U.S. bank to take a crypto-friendly stance. We have started accepting deposits in virtual currency from. The initiative tripled the existing $33.4 billion in bank deposits at the time.
Is FTX collapsing?
The bank’s decision came shortly after the FTX collapse hit all cryptocurrency institutions. However, the bank claims that bankruptcy has not occurred due to bankruptcy. In November, SBNY said its deposit relationship with FTX accounted for less than 0.1% of total deposits.
Banks have $103 billion in deposits, according to mid-November figures, and about 23% of this amount is related to the cryptocurrency industry. With this decision, the bank intends to reduce this amount to less than 20% immediately and to less than 15% in the near future.
