Signature Bank, A 'Blockchain Player'

Feb. 23, 2021 8:21 AM ETSignature Bank (SBNY)ETH-USD5 Comments
Damian Mark profile picture
Damian Mark


  • Signature Bank uses an Ethereum based payments application to serve its customers.
  • The bank is materially growing its crypto deposits and has been recognized by Forbes as a top 50 blockchain company (2021).
  • The bank is investing in future growth and is a long-term buy.

Early in the digital assets space, and part of the Forbes Blockchain 50 2021, Signature Bank (OTC:SBNY) is developing a specialty in serving institutional crypto customers, providing fast and convenient ways for its customers to deposit money in crypto trading accounts through the bank's Ethereum-based (ETH-USD) platform, known as Signet™. Notably, in 2020, deposits from crypto customers increased from $2 billion to approximately $10 billion.

J.P. Morgan (JPM) recently added SBNY to its focus list noting, among other things, that the bank's digital assets deposit balance hit $10 billion in 2020, reflecting a huge victory for the bank's digital assets team and a 500% increase in deposits since the end of 2019. Such digital assets deposits balance has, according to JPM, far exceeded the deposits of competitor Silvergate Capital Corporation (SI).

Signet™, the bank's digital payment platform, is designed to enable real-time payments for clients. The platform leverages Ethereum blockchain technology in order to permit bank clients to make payments 24 hours a day, seven days a week, 365 days a year. Transactions made on the Signet platform settle in real time, are safe and secure, incur no transaction fees and are transferred between bank clients. In its Q4 press release, the company proudly hailed the fact that "[w]e have been at the forefront, as evidenced by the first to launch a blockchain-based payments platform, and we intend to keep it that way. Hence the reason we invested in developing Signet before most investors -- and even our clients -- recognized the emergence of and massive changes in the digital payments economy.” Signature Bank "gets it," is ahead of the curve and its investments in Ethereum based blockchain technology are paying dividends.

In short, on a relative basis, SBNY is an under the radar play in the digital assets space. In

This article was written by

Damian Mark profile picture
Damian Mark is a business attorney with more than 20-years' experience representing entrepreneurs and other clients in financing transactions, private placements, mergers and acquisitions, debt restructurings and general corporate matters. He frequently works with health-care companies, government contractors, real estate companies and water/wastewater utilities. He has been investing in stocks, bonds, ETFs and closed-ends for just as long, and has also invested in private businesses.

Disclosure: I am/we are long SBNY, ETH-USD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The digital assets/blockchain space is very volatile. Between the time of writing and the time of publication, large swings in the prices of some of the securities/commodities referenced in this article may occur.

Recommended For You

Comments (5)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.