Another Bank Down: Crypto-Friendly Signature Bank Closed Over Systemic Risk Concerns – What Does This Mean for Crypto?
cryptonews.comYet 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.
The collapse, which occurred over the weekend, is the latest in a series of bank failures that are sending shockwaves through global financial markets, with many fearing that a major banking crisis is unfolding. The crisis has hit the crypto industry particularly hard, with Signature seen as a key bank for companies operating in the sector.
Despite reassurances from Treasury Secretary Janet Yellen that “decisive actions” are being taken to strengthen confidence in the banking system, shares of major US banks fell sharply in Wall Street trading on Monday morning.
The collapse in share prices across the sector intensified after President Joe Biden commented on the situation in a Monday morning speech that some crypto community members said did nothing to calm the markets.
The troubles for Signature Bank came to light shortly after two other crypto- and tech-focused banks, Silvergate Capital and Silicon Valley Bank, both collapsed before the weekend.
Silvergate Capital is known as one of the most crypto-friendly banks in the US, and the bank has worked with many of the most prominent crypto companies, including USDC issuer Circle and Michael Saylor’s MicroStrategy. The bank was hit hard by the fall of FTX in November last year, and suffered a run that forced it to sell $5.2 billion of debt securities at a loss.
Silicon Valley Bank, on the other hand, is known as an important banking partner for California-based start-ups and venture capitalists. The bank’s collapse now stands as the second largest bank failure in US history.
Signature Bank’s closure is technically the
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