Signature Bank in New York is the latest bank to clarify its ties to FTX, the cryptocurrency exchange that recently filed for bankruptcy protection.
The $114.5 billion-asset Signature said in a press release that FTX and related companies account for less than 0.1% of its overall deposits on Nov. 14. Signature had $102.8 billion of deposits at the end of the third quarter.
Signature noted that it does not lend on digital assets or invest in them. The bank also said it does not custody any digital assets for its clients.
The bank said its digital assets relationships “can be characterized as traditional deposit banking, including cash and treasury management services to institutional entities.
Signature said deposit balances in the digital asset space “remained stable” compared with the $23.5 billion of balances it had on Sept. 30.
Signature “is a well-diversified institution that employs appropriate risk management strategies that help us navigate the current challenging digital asset landscape,” President and CEO Joseph DePaulo, said in the release.
“Our strong capital, solid earnings and overall diversification, continues to provide a source of strength for our depositor clients,” DePaolo added.
There are other considerations investors should have when evaluating Signature, Jake Civiello, an analyst at Janney Montgomery Scott, said in a client note.
“We do believe that investors should consider indirect exposure such as regulatory risk and revenue associated with venture and PE banking derivatives,” Civiello wrote.
Silvergate Capital in La Jolla, Calif., also said recently that its ties to FTX are limited to deposits.