• Coinbase has announced that it has around $240 million with the recently closed Signature Bank.
• The Federal Deposit Insurance Corporation (FDIC) took control of Signature, which had $110.36 billion in assets and $88.59 in deposits at the end of 2022.
• The FDIC received approval to „complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors.“
Coinbase Announces Corporate Cash Balance with Signature Bank
Coinbase, one of the largest cryptocurrency exchanges in the world, has announced that it had around $240 million with the recently closed Signature Bank as of close of business on March 10. Coinbase stated that they expect to be able to recover these funds according to the Federal Deposit Insurance Corporation (FDIC).
Signature Bank Collapse
Regulators closed New York-based Signature Bank on Sunday, two days after closing Silicon Valley Bank in a massive collapse affecting billions in deposits. According to data from New York state’s Department of Financial Services, Signature had $110.36 billion in assets and $88.59 in deposits at the end of 2022.
The FDIC received approval to „complete its resolution“ of Silicon Valley Bank and protect all depositors who will be able to access their money starting Monday, March 13th without any losses associated with this move being borne by taxpayers. A similar systemic risk exception was granted for Signature Bank so no losses will be borne by taxpayers either and all depositors will be made whole.
Facilitating Transactions With Other Partners
Due to FDIC’s hold on Signature’s transactions, Coinbase is currently facilitating all client cash transactions with other banking partners although they did not name these partners publicly.
Statement By Treasury Secretary Yellen and Fed Board Chair Powell
On March 12, a joint Statement by Secretary of the Treasury Janet Yellen and Federal Reserve (Fed) Board Chair Jerome Powell noted that no losses associated with this process would be borne by taxpayers and all depositors would be made whole due to the FDIC’s actions regarding both banks‘ resolutions