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Signature Bank has signed two high-profile partnerships to push its digital asset and blockchain payments strategy forward, while the New York bank's CEO publicly strikes a balance on future lending to crypto companies.
The $80 billion-asset Signature has a reputation as a crypto-friendly institution — more than 16% of its desposts are from cryptocurrency clients. This week the bank signed a deal with Boston-based Circle to hold billions of dollars in reserve deposits related to USDC, Circle's fast-growing digital dollar, as well as an agreement to use Signature's Signet blockchain payment rail.
The bank additionally signed a deal with New York-based blockchain payment company GreenBox to provide banking services for GreenBox's smart contract token business. During Signature's earnings call this week, investors asked the bank about Signet's momentum in crypto and how it's pushing further diversification to products such as loans.
Signature helped process Paycheck Protection Program loans to crypto asset firms in 2020, and its executives expressed demand for lending and additional payment products in the cryptocurrency industry.
"We want to be very safe in this space, but we want to be in this space. We know there is a need and...