It looks like the SVB will bring a second bank down, despite what many experts thought. Sadly it is a crypto bank. Which means more bad things for us in the crypto space.
New York-based Signature Bank set to close
Signature Bank is set to close its doors later today as a consequence of the Silicon Valley Bank situation that unfolded last week and is still unfolding. While SVB was said to have very little impact on the "normal" banking sector, it was mostly dealing with financing startups in the tech sector. It however appears to have had negative consequences for the New York-based Signature Bank.
Silicon Valley Bank this way, well not for long sadly
The Federal Deposit Insurance Corporation (FDIC) has assumed control of the bank and its 40 branches. And have seized control of the funds, and all customers will automatically be transferred to the new Signature Bridge Bank, N.A. and they should have full access to all funds later today.
Signature Bank had a crypto focus, I assume that meant that they had customers that were involved in the crypto space. I assume that means mining companies or investment companies. As companies deal directly with "only" crypto, like exchanges. As exchanges have a notoriously hard time getting banking in the US. Something I assume won't change in the near future after the whole FTX shitstorm.
Hopefully, this will not have any big impact on the overall crypto space. Fingers crossed at least.
Have you any experience dealing with SIgnature Bank in any for? If so please share with us int he comment section. Same if you have any experience with the SVB. If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead.
See you on the interwebs!
Picture provided by: Fair use