Community banks are experiencing fund outflows to Coinbase, Cointelegraph reported on Feb. 19. Bank data analytics firm KlariVis surveyed 92 community banks and found net deposits of $78.3 million moved to Coinbase over 13 months.
According to the U.S. Federal Reserve, community banks refer to banks with assets of less than $10 billion. An analysis of data from 53 banks in the survey showed $122.4 million flowed out to Coinbase and $44.2 million flowed in. The average transfer was $851 when sending to Coinbase and $2,999 when receiving, but deposits occurred far less frequently. Most outflows occurred from money market accounts, and 96.3 percent of money market-related transactions went from banks to the exchange.
The average transfer amount from money market accounts was $3,593, much higher than for checking accounts. Community banks hold $4.9 trillion in deposits in the United States and account for 60 percent of small business loans of $1 million or less and 80 percent of agricultural loans. If the deposit outflows continue, local lending capacity could decline.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr