Deposit growth a likely headwind for crypto-friendly banks

Quick Take

  • Crypto-friendly banks, Silvergate Bank and Signature Bank, experienced strong non-interest bearing deposit growth in 2Q19
  • With exchange trading volume and blockchain funding trending lower in 3Q19, this will likely have a negative impact on crypto-related deposit growth moving forward
While falling interest rates are expected negatively impact the banking industries’ profitability, crypto-friendly banks will face additional headwinds this year as falling exchange trading volume and blockchain funding will likely hurt deposit growth. Exchange trading volume has been trending lower since June while blockchain funding has dipped as IEO’s have begun to fall out of […]

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