A Reuters report, which was later updated to reflect a statement on the matter from the FDIC, said unnamed sources stated that any buyer of Signature Bank would be forced to divest from the crypto industry. The FDIC responded that they merely warned potential buyers of the risk drawn from dealing with crypto andWhether required or not, Flagstar Bank has made the decision tocryptocurrency-related customers from the deposits it took control of.
“The former Signature Bank had total deposits of $88.6 billion and total assets of $110.4 billion. Today’s transaction included the purchase of about $38.4 billion of Signature Bridge Bank, N.A.’s assets, including loans of $12.9 billion purchased at a discount of $2.7 billion. Approximately $60 billion in loans will remain in the receivership for later disposition by the FDIC.
After a week of uncertainty, Signature Bank’s 40 branches have reopened today. All customers are directed to carry out their day-to-day banking operations as they did before until informed otherwise by Flagstar Bank. For the moment, Signet appears to still be operational, despite being in receivership. However, it’s unclear how long it will continue processing payments, and Circle has already moved its operations to BNY Mellon.