Community banks see net deposit outflows to Coinbase: Study

A transaction-level analysis of 92 community banks found $78.3 million in net deposits moved to Coinbase over 13 months, with money market accounts losing most outflows.

New analysis from banking data company KlariVis found that 90% of community banks in its sample had customers transacting with Coinbase. Across 53 banks where transaction direction could be determined, $2.77 flowed to the crypto exchange for every $1.00 returning, resulting in a net $78.3 million deposit shift over 13 months.

The study reviewed 225,577 Coinbase-related transactions across 92 community banks and found that transfers were heavily concentrated in money market accounts, where 96.3% of identifiable transaction volume represented funds leaving banks for the exchange.

"In general, community banks can be defined as those owned by organizations with less than $10 billion in assets," the Federal Reserve says on its website.

Read more