The crypto friendly bank has been reducing its involvement in digital asset markets in recent weeks, part of the ongoing fallout from recent crypto industry debacles.
Signature Bank will not handle transactions of less than $100,000 for crypto exchange customers, according to a statement from exchange giant Binance.
Binance said in the statement emailed to CoinDesk that Signature had told the company that it “would no longer support “any of its crypto exchange customers with buying and selling amounts of less than 100,000 USD as of February 1, 2023,” and that this would be true for “all Signature’s crypto exchange clients.”
“As a result, some individual users” might not be able to use SWIFT bank transfers to purchase or sell digital assets “with/for USD” for smaller amounts.
Binance said that 0.01% of our average monthly users were serviced by Signature Bank, and that it was actively working to find an alternative solution."
The company added that users could continue using their accounts, including "buying and selling crypto using credit or debit cards, using one of the other fiat currencies supported by Binance."
Bloomberg first reported the news.
SWIFT is a global messaging network that allows financial services firms to send and receive money transfer instructions and other information quickly and securely.
In recent weeks, Signature and other financial services firms have been ratcheting back their involvement in crypto markets, part of the ongoing fallout from crypto exchange FTX’s implosion and other industry debacles.
In December, Signature, which has been among Wall Street’s most crypto friendly banks, said it would 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. But given the recent “issues” in the space, Signature will reduce that amount to under 20% and potentially under 15% eventually, Signature CEO DePaolo said at a New York conference hosted by investment bank Goldman Sachs.
FTX was one of the bank’s clients, although the crypto exchange’s deposits with Signature amounted to less than 0.1% of the bank’s overall deposits. Still, the relationship between the two caused Signature’s shares to drop almost 20% in November.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Follow us on Telegram
Stay updated of all the news
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.