In the USA, another large bank was unexpectedly closed – this can “hit” the crypto market
[ad_1]
US regulators are shutting down Signature Bank, a major lender in the crypto industry, in an attempt to contain the spread of the banking crisis.
This is reported by Bloomberg and CNBC with reference to a joint statement by the US Treasury, the Federal Reserve System and the Federal Deposit Insurance Corporation.
According to Bloomberg interlocutors, the decision to close the bank came as a surprise to its managers, who learned about it shortly before the public announcement.
On Friday, the bank faced a massive outflow of deposits amid the liquidation of major Silicon Valley Bank. interlocutors of the agency at the bank say that, despite this, the situation stabilized by Sunday.
The collapse of Signature Bank can cause serious problems for one of the branches of the technology industry – the cryptocurrency sector. Signature is the largest bank in the crypto industry after Silvergate, which announced its liquidation last week. As of Friday, it had a market value of $4.4 billion after selling off 40% this year, according to FactSet.
Clients have already started declaring their assets in the bank. Coinbase Global Inc., the largest U.S. cryptocurrency exchange, said its bank balance was $240 million as of Friday evening.
Paxos Global said it has $250 million and that it “has private deposit insurance coverage that significantly exceeds our cash balance and the Fed’s single account credit insurance limits.”
Banking regulators said Signature Bank depositors would have full access to their deposits, just as depositors at the failed Silicon Valley bank did to ensure their money was returned.
Read more: The world is panicking over the collapse of Silicon Valley Bank and fears a new financial crisis. Is everything so serious?
We remind you:
US Federal Reserve System will provide additional funding to help the banking system function after the collapse of Silicon Valley Bank and Signature Bank.
Silicon Valley Bank pond the largest U.S. bankruptcy in a decade, after its longtime customer base of tech startups became concerned and began withdrawing deposits.
[ad_2]
Original Source Link
