Signature Bank Denies WSJ Claims: Not a Crypto Lender, No Liquidity Crunch

• Signature Bank has addressed false statements made by the Wall Street Journal in their Jan. 23 article about U.S. Home-Loan Banks helping Crypto Lenders stem outflows.
• Signature Bank clarified that it does not offer crypto lending services and is not suffering from a liquidity crunch due to massive fund outflows.
• Signature Bank noted that the loan obtained from the Federal Home Loan Bank of New York (FHLB) is part of its routine operations, not a result of a liquidity crunch stemming from massive crypto outflows.

Signature Bank, a New York-based full-service commercial bank, has addressed false statements made by the Wall Street Journal in their Jan. 23 article titled „U.S. Home-Loan banks Help Crypto Lenders Stem Outflows.“ The bank clarified that it is not a crypto lender and is not suffering from a liquidity crunch due to massive fund outflows.

In its press release, Signature Bank noted that the headline of the WSJ article falsely referred to it as a „crypto lender,“ when in reality the bank does not lend in the crypto space, nor does it have loans that are backed by crypto assets. The bank further noted that its relationships with clients in the crypto space are limited to US dollar-denominated deposits only.

The bank noted that the Federal Home Loan Bank of New York (FHLB) has been acting as its liquidity partner for the past two decades and that the reported loan obtained from the latter is part of its routine operations, not a result of a liquidity crunch stemming from massive crypto outflows.

The bank concluded the press release by reiterating that it does not offer crypto lending services and its loan from the FHLB is part of its regular operations. It further noted that its relationships with clients in the crypto space are limited to US dollar-denominated deposits only.

Signature Bank’s press release effectively addressed the false statements made by the Wall Street Journal. It clarified that it does not offer crypto lending services and is not suffering from a liquidity crunch due to massive fund outflows. The bank’s relationships with clients in the crypto space are limited to US dollar-denominated deposits only, and the loan obtained from the FHLB is part of its routine operations.