New York-based Signature Bank is joining the financial institutions that have understood the potential of cryptocurrencies and especially Bitcoin.
About the extent to which this bank will be involved and what services related to cryptocurrencies it will provide to its clients, informed the company's management, including Signature CEO Joseph DePaolo.
In Wednesday's call for Coindesk, the competent revealed that the bank's goal will be to offer its crypto clients Bitcoin-backed cash loans soon.
We want it to be a zero-loss business, And so we’re only going to have it for the very, very best clients. We’re going to underwrite it to death, have deep discounts and quality custodians. It will contribute in 2021, but not necessarily in the second quarter to a great extent. Signature CEO Joseph DePaolo
Following the launch of this service, Signature will be another US bank after California-based Silvergate bank, which offers Bitcoin-backed loans. Silvergate, a Federal Reserve member bank began offering crypto-backed loans in the middle of last year.
In the final, the CEO noted that the bank is not only focused on Bitcoin as collateral, but there are other cryptocurrencies at stake but for now cannot estimate what the interest rate yields will be.
As of 2020, the bank had total assets of $60.3 billion, deposits of $50.2 billion, and loans of $39.1 billion.