Signature Bank's blockchain-based Signet contributes $200 million to the $8 billion overall growth in deposits

Source: The Block 2020-07-25

Signature Bank saw strong growth this quarter nearing $8 billion in deposit growth — 2.5% of which can be attributed to the bank's blockchain-based payments platform.

The banking of digital asset companies made up a notable component of the growth, with $1 billion coming from such clients according to Signature's recent earnings call.

Signet, the bank's blockchain payments platform, contributed about 20% of the deposit growth from the so-called "digital" contribution, according to CEO of Signature Bank Joseph J. DePaolo, indicating the platform's contribution to the quarterly deposit growth was about $200 million. DePaolo explained that Signet's contribution is measured in activity rather than account balances. To be sure, the $1 billion came from digital asset client deposits and not directly from crypto custody.

"The digital team is a combination of things," he said. "It's usually not how much the balances are in Signet, it's how much activity occurs because the balances don't always stay at Signet."

Recent data also indicates Signature is doing more in the crypto space than facilitating deposits growth from digital asset customers. It also led major banks in PPP loans to crypto industry firms. Companies are often inclined to take out the small business loan with an institution they already bank with, meaning the PPP figure along with the growth in digital asset deposits could serve as a signal that crypto companies are increasingly banking with Signature.

Signature Bank

Deposit

digital asset companies

Signature Bank's blockchain-based Signet contributes $200 million to the $8 billion overall growth in deposits

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