New York financial regulators shut down Signature Bank on Sunday. Customers, however, will be bailed out by the U.S. Treasury, Federal Reserve, and Financial Deposit Insurance Corporation. Notably, all depositors will have access to their funds on Monday. Now, as per the latest revelation on Twitter, Coinbase holds $240 million in the now-collapsed financial institution.
Also Read: US Regulators have Closed Signature Bank
Coinbase expects to “fully recover” funds
Coinbase went on to assure users that capital fund “continues to be protected” by FIDC pass-through insurance. At the moment, nevertheless, the bank is facilitating client cash transactions via other banking partners. The exchange went on to explain that it expects to “fully recover” the $240 million worth of funds from the bank.
Also Read: Binance, Coinbase, OKX Untethered by Silvergate Capital Shutdown
Alongside storing cryptocurrency companies’ funds, Signature Bank also fostered payments between clients like hedge funds and exchanges. The transactions were critical to maintaining liquidity.
Additionally, the bank also ran Signet, a payment network that fostered commercial cryptocurrency clients to make real-time payments around the clock. Coinbase, on its part, integrated Signet to help clients rapidly transfer funds in October last year.
As of Mar. 8, the bank reportedly had around $16.5 billion in cryptocurrency-related client deposits.
Owing to the collapse of Signature Bank and Silicon Valley bank, regulators have stepped up. New York’s Department of Financial Services is reportedly in “close contact with all regulated entities. It is, in fact, keeping an eye on and analyzing market trends and cooperating closely with other state and federal regulators to protect consumers.
Superintendent Adrienne A. Harris said in her agency’s statement that the department is additionally working to make sure that the health of the entities is maintained and the stability of the global financial system is preserved.
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