- The bank's earnings report shows that deposits increased 8% in the third quarter
- The subscription bank continues to win crypto customers in 2020
Signature Bank, a challenging bank based in New York, achieved a 40% increase in deposits, 8% of which were obtained in the last quarter. As previously reported, crypto bank's blockchain push, introducing the first Stablecoin (fiat-indexed) in 2019, prompted JP Morgan Chase and Goldman Sachs to revise their own digital proposals.
Signature CEO and founder Joseph DePaolo has publicly praised the future of cryptocurrency, digital assets and blockchain. Speaking in 2018, he announced: 'If you are not involved in blockchain, in five years you will no longer be like a bank', shortly after the launch of Signet, crypto bank's DLT-led payment platform. Signet allows real-time settlement and real-time transactions between crypto bank clients.
Signature Bank is expected to launch an earnings call to announce the growth of unpaid deposits. This should be another indicator of acceptance of cryptographic clients to the bank.
Why deposits to an encryption bank?
The subscription has long maintained an operational focus on deposits, with DePaolo describing banks as deposit generators rather than loans. The idea is that the cost is recovered with the increase of the customer base and the offer of other banking services.
The focus has been successful so far. In the second quarter, $1 billion of the $8 billion in deposit growth was generated by the digital asset steam. As a bank clearly open to crypto companies, the signature's deposit growth indicates that crypto companies are taking on an increasing number of their low-cost deposits.
Signature Bank started as a start-up in 2000 and now constitutes $53 billion in just 20 years. It remains small compared to other major banks in New York but continues to weigh above its weight.