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 favor. Amongst the banks that accept cryptocurrency-related clients in the U.S., it will be important to keep an eye on Silvergate Bank and Signature Bank (SBNY).
Strong non-interest bearing deposits growth in 2Q19
Although providing banking services to cryptocurrency businesses brings additional compliance costs and regulatory risks, the few banks who do decide to take on that challenge are rewarded with cheap deposits from its customer base.
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Deposit growth a likely headwind for crypto-friendly banks written by Matthew Yamamoto @ https://www.theblockcrypto.com/genesis/43931/deposit-growth-a-likely-headwind-for-crypto-friendly-banks?utm_source=rss&utm_medium=rss&utm_campaign=default October 21, 2019 Matthew Yamamoto