Coinbase says it has about $240 million cash balance with Signature Bank

Cryptocurrency alternate Coinbase Global Inc has about $240 million in company money steadiness with Signature Bank, it mentioned in a tweet on Sunday, hours after the state regulators closed the New York-based lender.

“Due to FDIC’s hold on Signature’s transactions, we’re currently facilitating all client cash transactions with other banking partners,” the tweet added.

State regulators closed New York-based Signature Bank on Sunday, the third largest failure in US banking historical past, two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.

The Federal Deposit Insurance Corporation (FDIC) took management of Signature, which had $110.36 billion in property and $88.59 billion in deposits on the finish of final 12 months, in accordance with New York state’s Department of Financial Services.

All of the depositors of Signature Bank and Silicon Valley Bank will probably be made entire, and “no losses will be borne by the taxpayer,” the US Treasury Department and different financial institution regulators mentioned in a joint assertion.

Employees appeared to collect on the firm’s Manhattan headquarters for conferences on Sunday, ordering catering from Carmine’s, an Italian restaurant, and Starbucks espresso, in accordance with a Reuters reporter on the scene. People trickled out of the constructing after the news of the closure was introduced.

Representatives for the lender didn’t instantly reply to a request for remark.

Signature’s failure adopted Silicon Valley Bank’s Friday shutdown, the second largest in U.S. historical past behind Washington Mutual, which collapsed through the 2008 monetary disaster.

Signature was a industrial financial institution with non-public shopper places of work in New York, Connecticut, California, Nevada and North Carolina, and had 9 nationwide business strains together with industrial actual property and digital asset banking.

As of September, nearly 1 / 4 of its deposits got here from the cryptocurrency sector, however the financial institution introduced in December that it might shrink its crypto-related deposits by $8 billion.

Signature Bank introduced in February that its chief government officer, Joseph DePaolo, would transition right into a senior adviser position in 2023 and could be succeeded by the financial institution’s chief working officer, Eric Howell. DePaolo has served as president and CEO since Signature’s inception in 2001.

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