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Back in December, Signature Bank signaled it would reduce the deposits from digital asset players following the crypto crash. Now, it also restricts payment transactions where it acts as a ramp and offering, sending and receiving fiduciary payments for cryptocurrency trades. It's based on the greatest binary exchange. The decision is surprising considering the feedback from the Signature call last week.
"a trust banking partner of ours, signature bank, has indicated that it will no longer support any of its crypto exchange clients with the purchase and sale of amounts under US$100,000 as of February 1, 2023. This applies to all their crypto exchange customers. Correspondingly, some individual users may not be able to use swift bank transfers to buy or sell crypto with/for usd for amounts less than 100,000 usd,You don't have to pay much to run Signet. BINANCE said in a statement according to bloomberg news.
We have reached out to the bank of signatures for confirmation, but we have not received a response in time for publication.
Signature earnings call:
mentioned reducing deposits, not transactions
Signing profit call: mentioned reducing deposits, not trading. Deposits were down $7.35 billion in the fourth quarter of 2022, and the Bank expects a further reduction of $3 billion to $5 billion in 2023, with 1,410 digitally active customers. In comparison to the much smaller Silvergate, the change did not have as significant an impact on the bank.
The decision to restrict transactions seems to contradict the comments made by Signature Bank's Chief Financial Officer, Stephen Wyremski, during last week's call for results. Signature has its bookmarking network, a blockchain-based payment network used for conventional payments among bank customers and crypto onramps. In the fourth quarter, crypto transactions accounted for $275.5 billion. That compares with $117.1 billion for Silvergate.
Wyremski was asked how reducing digital asset repositories would affect bookmark fees and costs. Wyremski was asked how reducing digital asset filings would affect Signet's fees and costs.
His answer is as follows: We're reducing concentrations there. So we're seeing volumes on bookmarks – last quarter volumes were the highest we've seen, although we eliminated them later this year. As a result, we don't really expect that this will have a big impact on the number of bookmarks. We therefore do not really expect an impact on the volumes of Signet.”
So there will be no cost benefit if those volumes go down. Therefore, there will be no cost-benefit if volumes decline in this sector. We don't really get out of dealing with customers. So ultimately, all we’re doing is limiting the amount that clients can maintain in overall deposits at our institution.”
Leveraging its blockchain payments network
Apart from enabling the crypto space, Signature has been a blockchain pioneer since the launch of the Signet blockchain payments network back in 2018, which was approved by local regulator NYDFS. The Signet network was developed by trueDigital that has since rebranded to Tassat, which recently launched a blockchain-based network for interbank payments.
The bookmarking network was developed by truedigital who has since renamed tassat, which recently launched a blockchain network for interbank payments. Last week, Coo Eric Howell spoke about the use of blockchain in payments. Another sector that enjoys 24/7 payments using bookmark are freight forwarding companies, the biggest bookmark user by the number of transactions. However, cryptography takes precedence over shipment in dollars.
Following shipping and cryptography, payroll businesses are the third largest bookmark ecosystem. "I mentioned that I didn't think crypto would be in the top 10 (bookmarked) once we got other industries adopting blockchain technology," says howell. One of our shareholders has stated that he is not likely to be in the top 100. One of our shareholders said he would probably be out of the top 100.
It is therefore only a question of raising awareness among others. In early January, it announced major layoffs and last week, announced a loss of $1 billion for the quarter because of the impact of the crypto collapse.
