Signature had begun a pull back from digital assets in the wake of the blowup of the FTX exchange but still had US$16.5 billion in crypto-related client deposits as of March 8. Signature and Silvergate also enabled fast payments between customers like hedge funds and exchanges, supporting digital-asset liquidity.
The closure of Signature Bank, a lender that counted a number of crypto companies as customers, marks another major setback for digital assets as the industry becomes ever more cut off from the banking system.
The Treasury Department said Signature Bank was closed by New York state regulators Sunday and that depositors will have access to their money Monday.
The shutdown comes soon after the twin collapses of Silvergate Capital Corp. and Silicon Valley Bank. All the banks were, at least at one point, counted among the US’s most crypto-friendly financial institutions.
