Schlagwort: crypto business

Key takeaways

• Crypto-friendly bank Signature Bank has been shut down by New York Banking authorities. 

• The Federal Reserve said the decision was made to protect the US economy and strengthen public confidence in the banking system.

• Signature Bank’s closure comes days after the collapse of the Silvergate Bank and the Silicon Valley Bank.

Another crypto-friendly bank has been closed down

The Federal Reserve announced on Sunday that the New York-based Signature Bank had been closed down by its state charter authority.

This latest cryptocurrency news means that Signature Bank is the third major bank to shut down operations within the space of a week. 

In a statement issued on March 12, the Federal Reserve said the decision to shut down Signature Bank was made with the United States Federal Deposit Insurance Corporation (FDIC) to protect the U.S. economy and strengthen public confidence in the banking system.

The United States apex bank added that they would backstop all depositors of Signature Bank. The Federal Reserve wrote;

“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.

Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.”

The Federal Reserve pointed out that the move is designed to ensure that the United States continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth. 

The crypto market remains resilient 

The Fed said shareholders and certain unsecured debtholders would not be protected. 

Signature Bank’s shutdown makes it the third major bank to close operations within the space of a week. On March 9th, crypto-friendly bank Silvergate shut down its operations and voluntarily liquidated its assets. The bank said it made the decision in light of recent industry and regulatory developments.

Silicon Valley Bank, a major bank for some crypto and tech startups, also collapsed last week. However, the crypto market has remained resilient.

Bitcoin rose by nearly 10% on Sunday to trade above $22k after dropping below the $19k level last week. The total cryptocurrency market cap also stands above the $1 trillion level despite the ongoing FUD in the market.

The post New York banking authorities shut down crypto-friendly Signature Bank appeared first on CoinJournal.

• Circle said it failed to remove $3.3 billion from Silicon Valley Bank.
• SVB is under FDIC receivership following its collapse.
• USDC depegged following the news, falling 8% to hit lows of $0.91 on Saturday morning.

Circle, the blockchain payments company that issues the USDC stablecoin, has confirmed that $3.3 billion worth of USDC reserves are stuck at the troubled Silicon Valley Bank.

The latest cryptocurrency news around USDC comes after crypto markets sank on Thursday amid the collapse of SVB and Silvergate Bank.

USDC depegs as Circle confirms $3.3 billion SVB exposure

In a tweet late Friday, Circle noted that efforts to remove its balances from the bank had failed on Thursday, meaning $3.3 billion of the stablecoin’s cash reserves remain at the bank.

“Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB,” the firm noted.

In a follow up tweet as it confirmed the exposure to the collapsed bank, the firm noted:

“Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. economy and will follow guidance provided by state and Federal regulators.”

Circle had earlier disclosed that SVB was one of six banking partners that held roughly 25% of the cash reserves for USDC. That includes Signature Bank and Silvergate Bank that recently announced it was liquidating.

The full list of banks that held cash for Circle’s USDC are Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank (a division of Flagstar Bank, N.A.), Signature Bank, Silicon Valley Bank and Silvergate Bank.

Read more: https://t.co/xzeyqRgk8D

— unusual_whales (@unusual_whales) March 11, 2023

Even as sentiment veered south, Circle had noted that it continued to “operate normally,” hinting that it was waiting for clarity on the impact of SVB’s FDIC receivership on depositors before providing more details.

But with uncertainty rising, USDC lost its dollar peg, falling more than 8% to lows of $0.91 early Saturday.

“A black swan failure in US banking system”

Dante Disparte, the Chief Strategy Officer & Head of Global Policy at Circle, also commented on the unfolding events, noting that the company was “protecting USDC from a black swan failure in the US banking system.”

“[SVB] is a critical bank in the US economy and its failure – without a Federal rescue plan – will have broader implications for business, banking and entrepreneurs,” he added.

The post Circle says $3.3B of USDC reserves stuck at Silicon Valley Bank appeared first on CoinJournal.

• FDIC closed Silicon Valley Bank today and took control of its deposits.
• Austin Campbell says it could actually be a benefit for Signature Bank.
• Shares of Signature Bank ended more than 20% down on Friday.

Shares of Signature Bank (NYSE: SBNY) ended more than 20% down today following the collapse of its crypto banking peer SVB Financial.

SVB marks one of the largest U.S. bank failures

On Friday, the Federal Deposit Insurance Corporation closed the said bank and took control of its deposits – a development that particularly shook financial stocks since such a bank failure was last seen only during the global financial crisis.

Remember that the news follows an announcement also from Silvergate Capital that it will liquidate its crypto bank. Consequently, a bunch of crypto companies in recent days picked Signature Bank as a replacement.

Still, the New York-based commercial bank says it’s exposure to digital assets is fairly small. “SBNY” is now down about 35% for the year.

Pro explains what it all means for Signature Bank

On the plus side, Austin Campbell of Zero Knowledge Consulting expects both Silvergate and the SVB news to actually be a benefit for Signature Bank.

He’s convinced that the diversified deposit base will help it avoid falling prey to the same structural weakness. In a tweet this afternoon, Campbell wrote:

Keep in mind you have to be a forced seller. Deposits moving from SVB go to other banks so this is likely improving the position of competitors like SBNY.

His view is in line with the JPMorgan analyst Vivek Juneja who also doesn’t expect the SVB fiasco to spill over to other banks. In January, Signature Bank said its net income increased just over 10% year-on-year in its fourth financial quarter.

The post Pro: SVB collapse may put this crypto bank in a stronger position appeared first on CoinJournal.

• Degen Zoo NFT game has been developed in a record 30 days.
• Degen Zoo is derived from the abandoned Logan Paul’s abandoned Crypto Zoo project.
• Logan Paul had indicated that Crypto Zoo would take years to develop.

DAO Maker (DAO/USD) founder Christoph Zaknun has launched the Degen Zoo game, an NFT game derived from Logan Paul’s abandoned Crypto Zoo. Zaknun developed the NFT game in a record 30 days single-handedly to disapprove of Logan Paul’s claim that his Crypto Zoo would take years to develop.

Zaknun took the challenge to build the game in 30 days after Logan Paul, who is a popular YouTube star, released a video saying that Christoph Zaknun had no right to dictate the required development timeline. Zaknun further highlighted Paul Logan’s greed by pledging to donate all the profits from the game to charity.

115k wallets lining up for the new game

As of today, more than 115,000 crypto wallets have registered to join the Degen Zoo NFT game pledging over $700 million, which is a new record for crypto games.

During the course of the game development whose progress Zaknun broadcasted daily, more than 250,000 people followed the Degen Zoo on Twitter.

Degen Zoo has a deflationary token and an NFT collection featuring 120 endangered species. The game is designed to simulate the impact of capitalism on animal extinction. Players will be incentivized to “kill” their NFT-minted animal, pushing the collection to extinction to raise awareness of the devastating effects of human greed on wildlife.

Degen Zoo testnet

A testnet of the Degen Zoo was released a few days before the 30-day deadline and within a short while, 30,000 testnet transactions had been made by about 3,000 players.

Christoph Zaknun is now proceeding with the mainnet release of Degen Zoo. The DAO Maker co-founder has exceeded the demand of previous GameFi release date benchmarks.

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