Signature Bank, a New York based financial institution with deep ties to the cryptocurrency industry, collapsed over the weekend after depositors made a run on the bank, further roiling the digital assets industry, which has suffered a string of major blows in recent months. The bank has long been an integral financial institution for the industry, hosting tools for facilitating digital transactions and counting notable crypto companies, such as the cryptocurrency exchange Coinbase, as its clients. It’s part of a slim group of mainstream banks catering to the needs of cryptocurrency firms and their clients, an area that was upended after the closing of another crypto-friendly bank, Silvergate Capital, last Wednesday. Signature Bank’s collapse was triggered in part by the fall of Silicon Valley Bank, another financial institution interwoven into fabric of the technology industry, New York Gov. Kathy Hochul (D) told reporters in a news conference on Monday. Few banks were as deeply embedded within the cryptocurrency firms as Signature Bank and Silvergate, and their downfall is a symbolic and practical blow to the embattled industry, legal experts said. The institutions offered an air of legitimacy to crypto companies and provided clients key services, such as around-the-clock transactions.
Full story : Signature Bank’s collapse spells trouble for cryptocurrency industry.
