Signature Bank adopts caps to reduce concentration of crypto deposits

Quick Take

  • Crypto-friendly Signature Bank is placing caps on deposits from clients in the digital assets industry.
  • Bank is adopting a per-client deposit cap of at most 2% of total bank deposits.

Signature Bank, long known as being friendly to crypto clients, is introducing caps to reduce the concentration of deposits from clients in the digital asset industry to below 20% of total bank deposits.

The bank, in an email to clients from group director Joseph Seibert obtained by The Block, said it would adopt a per-client deposit cap of at most 2% of total bank deposits.

"Signature Bank will continue servicing clients in the digital asset industry, including stablecoin clients," Seibert said, citing "rapid deposit growth and the ongoing market volatility in the digital asset industry" for the change.

In a separate email to The Block in response to follow-up questions, Seibert said the cap would be $2 billion per client.

With deposits ending the third quarter at $102 billion, the measure would cap total deposits for the entire digital ecosystem at $20.4 billion, he said.


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CEO Joe DePaolo first announced that it would reduce deposits from the crypto industry at a Tuesday event in New York, according to a report from CoinDesk.

The bank said it expected the strategy to impact a "minimal amount" of clients that have already been notified and that the decision would allow it to utilize capital in a more strategic manner. 

"We continue to invest resources in this space and expect growth to continue over the coming years as we continue to strive to the preeminent bank in servicing the digital asset industry," Seibert said.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Authors

Nathan Crooks is the U.S managing editor at The Block, based in Miami. He was previously at Bloomberg News for 12 years, where he helmed coverage of South Florida after roles as a breaking news editor and bureau chief in Caracas, Venezuela. He's interviewed presidents, government ministers and CEOs, and, besides crypto, has covered major news events on the ground from earthquakes to hurricanes to the Chilean mine rescue in 2018. Nathan, a native of Clarion, Pennsylvania, holds a bachelor's degree from the University of Toronto, where he completed a specialist in political science, and an MBA from American University in Washington, D.C.
Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].


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