A recent update by Binance has revealed that Signature Bank, a major SWIFT gateway service provider, will partially terminate access to Binance customers starting in February.

Signature Bank will not handle transactions of less than US$100,000 for crypto exchange customers starting in February, according to a statement from the world’s largest cryptocurrency exchange Binance.

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.

Signature Bank, in an email to clients from group director Joseph Seibert obtained by The Block, said it would adopt a per-client deposit cap of at most 2% of total bank deposits.

Signature Bank (SBNY) will shrink its deposits tied to cryptocurrencies by $8 billion to $10 billion, signaling a move away from the digital asset industry for the bank that until recently had been one of the most crypto-friendly companies on Wall Street.