Banking crisis : The crypto-friendly Signature Bank is also closing its doors
Bitcoin and altcoins

Banking crisis : The crypto-friendly Signature Bank is also closing its doors

After Silvergate Bank and Silicon Valley Bank, it is the turn of the crypto-friendly bank Signature Bank to close its doors.

Indeed, the American authorities announced on Sunday a series of measures to reassure individuals and businesses after the failure of Silicon Valley Bank (SVB). Another bank, Signature Bank, was closed by the regulator.

These measures were taken jointly by the Secretary of the Treasury, Janet Yellen, the Fed and the deposit guarantee agency (FDIC), after consultation with U.S. President Joe Biden, according to the statement.

Signature Bank closure bad news for crypto sector

The U.S. authorities will ensure the withdrawal of all deposits of the SVB and Signature Bank. The U.S. central bank, the Federal Reserve (Fed), has pledged to lend the necessary funds to other banks that may need them to meet the demands of customer withdrawals.

U.S. authorities have announced the closure of the crypto-friendly Signature Bank in order to stop contagion within the banking industry.
The closure of Signature Bank is bad news for the crypto sector, it was used by many crypto companies like Coinbase or Paxos.

Signature Bank’s customer deposits will also be secured, Coinbase notably held more than $200 million in this bank that crypto sector players will no longer be able to use after the recent demise of Silvergate Bank.

It now remains to be seen whether the measures taken by the US authorities will be enough to calm the situation when the financial markets open this Monday.

Authorities who fear that many companies and individuals withdraw their money from certain banks on Monday for fear of new bank failures to come.

As for the crypto sector, it is now in a difficult situation after the disappearance of the banks Silvergate, Signature Bank and Silicon Valley Bank which were used by many players in the crypto industry.

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