Share this article
Signature Bank Downgraded at Jefferies Due to Shrinking Crypto Business
The cut to "hold" by the formerly bullish analyst comes after the stock has suffered a 67% year-over-year decline.
By Will Canny
Updated May 9, 2023, 4:05 a.m. Published Jan 9, 2023, 3:36 p.m.
Signature Bank’s (SBNY) management’s decision to shrink its digital asset deposits business is understandable given the recent turmoil in the cryptocurrency industry, but the negative impact on net interest margin (NIM) and and net interest income (NII) is being underappreciated, Jefferies' Ken Usdin said in a report Monday.
Usdin downgraded SBNY to hold from buy, and slashed its price target to $124 from $185. The rating and price target cuts come after the stock’s 67% tumble from year-ago levels. Shares are down marginally to $116 in early action on Monday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Shrinking crypto deposits by $8 billion to $10 billion and replacing them with wholesale borrowings costing around 4.25% will drive a significant reset in net interest margin in the coming quarters, said Usdin. While management plans to pay down some borrowings with core deposit growth, it will take some time for the bank’s other businesses to generate that growth, according to his report.
Signature in early December said that it planned to shrink its deposits tied to cryptocurrencies, signaling a move away from the digital asset industry for the bank.
Read more: Signature Bank to Reduce Crypto-Tied Deposits by as Much as $10 Billion
Plus pour vous
Ce qu'il:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
Plus pour vous
VanEck's new Avalanche ETF filing to include staking rewards for AVAX investors
The fund will use Coinbase Crypto Services as its initial staking provider and pay a 4% service fee, with rewards accruing to the fund and reflected in its net asset value.
Ce qu'il:
- VanEck has updated its filing for an Avalanche ETF, VAVX, to include staking rewards, aiming to generate income for investors by staking up to 70% of its AVAX holdings.
- The fund will use Coinbase Crypto Services as its initial staking provider and pay a 4% service fee, with rewards accruing to the fund and reflected in its net asset value.
- If approved, the fund will trade on Nasdaq under the ticker VAVX, tracking AVAX's price via a custom index, and will be custodied with regulated providers, including Anchorage Digital and Coinbase Custody.
Top Stories
