Yes. Backups go to a file and it is simply a copy of what is on the Signet device. This means it is encrypted, so it can't be unlocked without your device's password.

Keep the file safe though, because the password is the only thing needed to unlock the database and get all your secrets. There's no hardware protecting the passwords when they're in a file.

I keep my Signet backups offline for this reason. A thumb drive or USB hard drive works great for this. But if you wanted to store the backups on a cloud service (your own or someone else's), you certainly can.