New York Financial News

The United States Justice Department is reportedly investigating the collapse of the TerraClassicUSD (USTC) stablecoin which contributed to a $40 billion wipe out in the Terra ecosystem last May.

Crypto mining firm Marathon Digital Holdings has assured investors that the firm's cash deposits at Signature Bank are secure and available for use as of Mar. 13.

The United States Justice Department is reportedly investigating the collapse of the once-leading algo-stablecoin – TerraUSD (UST). According to a report by Wall Street Journal, the Federal Bureau of Investigation (FBI) and the Southern District of New York (SDNY) have started to probe UST’s collapse.

The expected restart of student-loan repayments later this year could add to pressure on younger borrowers, who are already falling behind on debt in an era of high inflation and rising interest rates. 

Worker filings for U.S. unemployment benefits jumped last week due to increases in New York and California but remained historically low, as demand for labor outstrips the number of people looking for work.

Barney Frank, a former member of the United States House of Representatives, has reportedly suggested New York regulators closed the crypto-friendly Signature Bank as part of a seeming show of force.

Crypto bulls are on the offensive following an eventful event characterized by disclosures of exposure to fallen United States banks. Terra Luna Classic price spiraled massively during the weekend as investors reacted to the messy events surrounding Silicon Valley Bank (SVB) and Signature Bank New York.

Yet another crypto-friendly bank has gone down with the collapse of New York-based Signature Bank. But according to the industry, crypto now cannot be stopped.

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Circle has revealed that Cross River Bank — recognized for its services to fintech and crypto firms like Visa and Coinbase — is now its new commercial banking partner for producing and redeeming USD Coin (USDC).

Signature Bank was closed by regulators on 12 March, the second massive bank failure in three days.

Major crypto exchange Coinbase stated that it has millions in corporate cash balance with the shuttered Signature Bank.

The wider cryptocurrency community continues to debate the ongoing fallout following the closure of three major American banks, with calls for neobank services for the industry on the cards.

The expected restart of student-loan repayments later this year could add to pressure on younger borrowers, who are already falling behind on debt in an era of high inflation and rising interest rates. 

Worker filings for U.S. unemployment benefits jumped last week due to increases in New York and California but remained historically low, as demand for labor outstrips the number of people looking for work.

Crypto exchange Coinbase, crypto lender Celsius and stablecoin issuer Paxos are among the crypto firms with funds reportedly tied up with the now-shuttered Signature Bank. 

The President of the United States Joe Biden has vowed to hold those responsible for the failure of Silicon Valley Bank and Signature Bank while assuring Americans that their deposits are safe. 

The fallout from the failure of Silicon Valley Bank reached further into crypto, unhinging a key cog in the market that’s meant to be among the safest digital assets in the space. The second-largest stablecoin fell from its intended $1 peg, trading as low as 81.5 cents as investors reacted to the exposure of issuer Circle Internet Financial Ltd. to the collapsed bank. USD Coin, or USDC, is an asset-backed stablecoin and a widely used plank of crypto markets. The token is intended to hold a constant $1 value, fully backed by reserves of cash and short-dated Treasuries. But late Friday, Circle disclosed that $3.3 billion of its roughly $40 billion stockpile of reserves is held with Silicon Valley Bank, which has just become one of the largest US bank failures in recent history. Regulators seized the bank on Friday and investors are awaiting more clarity on the return of deposits. In that vacuum, USDC fell below $1, and was trading at about 91 cents as of 8:45 a.m. in New York. Smaller stablecoins like DAI, which is sometimes viewed as a proxy for USDC, and Pax Dollar also fell from their pegs. DAI is the fourth-largest stablecoin by circulation and one of the most widely used tokens in decentralized finance.

"Once a boom is well started, it cannot be arrested. It can only be collapsed."  - John Kenneth Galbraith

Is the media getting a bit over-excited about companies choosing to list in New York rather than London? After all, what has actually happened?

Hot on the heels of several United States bank collapses, the Federal Reserve has announced $25 billion worth of funding aimed at backstopping banks and other depository firms.