The collapse of SVB, one of the largest banks working with crypto companies, was the beginning of a new black streak for the entire Web3 industry. The first victim of the situation was Signature Bank, which closed on March 12 “due to systemic risks.”
On March 12, two days after the collapse of Silicon Valley Bank (SVB), the New York state regulator decided to shut down Signature Bank. According to Bloomberg, both banks had a similar stock portfolio.
The US Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation issued a joint statement in which they tried to prevent the spread of panic, saying that Signature Bank depositors will not lose access to their deposits. Also, as in the case of SVB, the directors of Signature Bank left their posts.
Signature Bank has been known for its loyalty to crypto companies. Long before the talk of mass adoption, in 2019, when many institutions were refusing to open accounts for Web3-related startups, the bank was already well on its way to supporting the blockchain business. Then, within Signature Bank, a whole division called “Blockchain and Digital Assets” was created.
Signature Bank’s assets were valued at $110.36 billion as of early 2023, according to the New York City Department of Financial Services.
Author:
Grigory Shcheglov
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
