Crypto-friendly Signature Bank shut down by regulators after collapses of SVB, Silvergate

by user


State authorities closed New York-based Signature Bank
SBNY,
-22.87%

on Sunday, after Silicon Valley Bank was shut down by regulators on Friday in the biggest bank failure since the 2008 financial crisis.

All depositors of Signature Bank will be made whole, according to a joint statement by the Department of the Treasury, Federal Reserve and FDIC.

Also see: Silicon Valley Bank depositors will get ‘all of their money,’ regulators say

Signature Bank has been popular among crypto companies, especially after crypto-friendly Silvergate Bank
SI,
-11.27%

said last Wednesday it would close its operations.

Signature Bank provides deposit services for its clients’ digital assets, but does not invest in, does not trade, does not hold on its own balance sheet nor provide custody of digital assets, and does not lend against or make loans collateralized by such assets, the company said.

The Federal Reserve on Sunday also announced a new emergency loan program to bolster the capacity of the banking system.

U.S. equity markets traded higher Sunday afternoon, with the Dow futures
YM00,
+0.92%

up 0.5%, and the S&P 500
ES00,
+1.33%

futures up 0.8%. Futures for the Nasdaq 100
NQ00,
+1.42%

rose 0.9%, according to FactSet data.

Major cryptocurrencies rallied Sunday. Bitcoin
BTCUSD,
+2.19%

surged 6.4% in the past 24 hours to around $21,842 and ether
ETHUSD,
+1.48%

gained 7% to $1,576, according to CoinDesk data.



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