Blofin CEO Matt said on Twitter that Signature Bank's plan to reduce its deposits tied to cryptocurrencies is not because the bank has problems, but because it wants to accept more diversified customers.
Matt said, "just visited Signature Bank. They are fine. They have big clients who have huge numbers on their balance sheet. The regulators worry about the concentration in both total crypto balance and big clients. So they just want to reduce it to accept more diversified customers."
According to previous reports, Signature Bank, a crypto-friendly bank in the US, will shrink its deposits tied to cryptocurrencies by $8 billion to $10 billion. Nearly a quarter of the New York-based bank's $103 billion in total deposits, or roughly 23.5%, came from the crypto industry as of September 2022. It is reported that Signature will reduce that amount to under 15% eventually.
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