Signature Bank Suffers $4.27 Billion Crypto Deposit Outflows

Signature Bank, a New York-based commercial bank, published Wednesday its trading update for the mid-Q3 quarter of this year. The bank reported that deposit withdrawals from the bank totalled $4.27 billion as cryptocurrency fear spreads.

In other words, the bank said a $4.27 billion fall in crypto outflows is to blame for a decline in its spot deposit balances.

However, the bank said it is “well-positioned to reach the target of combined loans and securities growth” for the third quarter despite pressure from the outflows of digital assets.

In contrast, Signature said non-crypto deposits increased to $2.64 billion quarter-to-date, with “specialist mortgage banking solutions” accounting for the majority of that sum ($2.29 billion).

The crypto winter has been brutal this year. So far, the share price of Signature bank has decreased 49% since the beginning of this year. This has been attributed to the ongoing harsh crypto winter.

Due to a surge in crypto industry deposits, Signature Bank had one of the best years among banks last year. But all that changed this year.

Uncertainty still pervades the crypto market because of the fallen token values and the impacts of CeFi bankruptcies.

Joe DePaolo, the CEO of Signature Bank, talked about the development and said that the bank has no direct exposure to cryptocurrencies because it only retains the cash deposits of its clients in dollars.

DePaolo said the bank’s growth does not depend on the growth of the digital currency ecosystem. The executive added that while the company’s exposure to the crypto ecosystem remains a headwind, the bank has grown loans at an annualized rate of 25.4% and deposits (ex-digital assets) by 26.3%.

Signature Bank offers financial services to institutional cryptocurrency traders and related firms, including exchanges and miners.

Of course, Silvergate Bank and Signature Bank are the only two U.S. institutions that are crypto-friendly, operating real-time payment networks.

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BTSE Launches BTC and ETH Earn Products

Digital asset exchange platform BTSE announced the launch of its Bitcoin (BTC) and Ethereum (ETH) earn products. - 2022-06-27T170127.313.jpg

Following the launch, investors can generate passive income, according to BTSE, and the new products add to the growing range of options in BTSE Earn.

The announcement also added that the products will start at an annual percentage rate of 4.5% and potentially touch 60%. Users can also select a deposit duration of 30, 60 or 90 days with a minimum deposit of 0.5 ETH or 0.03 BTC.

Retail investors from BTSE make more than US$1.5 billion in volume on BTC and ETH futures per day and the company stores more than 99% of its customers’ funds in cold wallets to safeguard client assets.

BTSE said that it does not rely on third-party technology and uses self-hosted servers. The company leverages financial decentralisation while enhancing convenience, accessibility and returns.

“BTSE Earn products give our users an easy way to earn interest on their assets. This new offering with no minimum investment requirements, no penal lock-in options and attractive returns will provide the much-needed flexibility to users who are looking into diversifying their asset portfolios. Given the high annualised interest rates, we foresee strong interest in both our products,” said Henry Liu, Chief Executive Officer of BTSE.

“With the current volatility in the cryptocurrency space, choosing proper crypto asset products is crucial. We’re committed to helping our users make sound decisions with strong upside potential,”  added Henry.

BTC and ETH are the largest cryptocurrencies by market capitalisation.

According to a recent report from Blockchain.News, BTSE has become the first crypto exchange to offer perpetual futures trading for the world’s newest stablecoin, US Decentralized (USDD).

BTSE’s offerings in its Futures feature, including perpetual futures for USDD, may appeal more to experienced traders. 

However, for less advanced users, BTSE provides a collection of resources and learning materials — the BTSE Testnet, tutorials, and a support centre — to introduce the mechanics behind futures. The materials can help users understand the risks and rewards involved in BTSE’s future products and provide traders with a way to backtest strategies or formulate plans to profit from market volatility.

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Ethereum 2.0 Sees High Deposit Rate as London Hard fork Looms

Ethereum 2.0 investors are all geared up as the deposit rate into the network’s contract address has increased of late.

According to Data from CryptoQuant, the number of accounts that deposited 32 ETH into the smart contract surged to over 4,000 following the latest major correction of the cryptocurrency.

The increased bet on the future of the Ethereum blockchain comes as the next major upgrade in the network, the London hard fork is set to go live on August 5. The increased deposit rate, which typically reduces the supply of Ethereum on spot exchanges, is also set to complement the unique features that are billed to be introduced by the London hard fork.

The expected upgrade will introduce a new fee structure that will see users of the network pay a base fee for transactions against the old model in which miners determine fees. Besides this rent control structure, the upgrade, also known as the EIP 1559 upgrade, will limit the supply of Ether through periodic token burning. 

The confluence of increased ETH 2.0 deposits and an impending hard fork launch spells a bullish sentiment for the Ethereum supply and demand outlook.

While this is billed to have a good bearing on the token price, the bears currently appear to be on a sell-off spree in what seems like a move to lower price to get a good discount post EIP-1559 upgrade launch. At the time of writing, Ethereum was trading at $2,483.34, down 5.01% in the past 24 hours, according to CoinMarketCap

The current price is a sharp decline from the earlier 7-day high of $2,695.43 printed yesterday, a plunge that spells a healthy retrace. The current bullish fundamentals the Ethereum blockchain is billed to experience are poised to stir a new price rally in what may usher prices back toward the $3,000 to $3,500 price range in the near to medium term.

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@Chillydown87 @bitfinex @BTSEcom @Liquid_BTC @Liquid_BTC is just another network for bitcoin (and stablecoin) transport. You dont book a trade when you deposit BTC or withdraw from exchange either. liquid exchanges generally swap BTC for L-BTC 1:1 or just treat them as the same thing with deposit/withdraw network choice

@Chillydown87 @bitfinex @BTSEcom @Liquid_BTC @Liquid_BTC is just another network for bitcoin (and stablecoin) transport. You dont book a trade when you deposit BTC or withdraw from exchange either. liquid exchanges generally swap BTC for L-BTC 1:1 or just treat them as the same thing with deposit/withdraw network choice


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