Customers Bancorp (NYSE:CUBI) is the new crypto-crush when it comes to banking firms in the digital asset sector. A recent report by Bloomberg notes that the Pennsylvania-based regional bank says that “hundreds of digital asset firms,” including stablecoin issuers, crypto exchanges, and market makers, are working with Customers Bancorp.
The rise in the crypto sphere follows the demise of some crypto-friendly institutions like Silvergate and Silvergate.
Customers Bancorp touts its blockchain-friendly operation stating it is “one of the very few banks that provides a blockchain-based 24/7/365 digital payment solution.”
Customers Bancorp Chair & CEO Jay Sidhu has focused on being a Fintech-driven operation offering Banking-as-a-Service and digital banking products.
At the same time, Sidhu has been quick to move to take advantage of the most recent banking crisis by recently hiring the venture banking team formerly employed by Signature Bank. This group which is said to be nearly 30 employees, has been tasked to work initially on the $631 million venture banking loan portfolio purchased at 85% of book value. Then, the team will work to build the business further.
During the most recent earnings report, Sidhu highlighted the bank’s liquidity noting that 81% of total deposits were insured.
“We maintain a strong liquidity position, with $9.4 billion of liquidity immediately available, which covers approximately 272% of uninsured deposits, and our loan-to-deposit ratio stayed at about 80%.”
Crypto banking can be dicey, and apparently, Customers Bancorp has put some limits on the crypto accounts. At the same time, federal regulators have cautioned financial institutions to be careful what they do when they work with crypto firms which have fallen out of favor with the current administration.