Regulators close a signature bank that supports cryptocurrencies
After Silicon Valley Bank was shut down by regulators on Friday during the largest bank failure since the 2008 financial crisis, state authorities forced the closure of New York’s SBNY on Sunday.
The Treasury Department, Federal Reserve, and FDIC announced together that all Signature Bank depositors will receive compensation.
Signature Bank has been popular with crypto businesses, especially after crypto-friendly Silvergate Bank SI announced last Wednesday that it was ceasing operations.
Signature Bank provides deposit services for its customers’ digital assets, but does not invest in, trade, maintain its own balance sheets, or hold digital assets in digital assets, and does not make loans against or make loans secured by such assets. said the company.
The Federal Reserve also announced a new emergency lending program on Sunday to bolster the capacity of the banking system.
U.S. stock markets traded higher on Sunday afternoon, with Dow YM00 futures up 0.5% and S&P 500 ES00 futures up 0.8%. Futures for the Nasdaq 100 NQ00
rose 0.9% according to FactSet data.
Major cryptocurrencies rallied on Sunday. Bitcoin BTCUSD is up 6.4% to around $21,842 and Ether ETHUSD is up 7% to $1,576 over the past 24 hours, according to CoinDesk data.