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Home » Without cryptocurrencies, this will be the transformation of the collapsed signature bank

Without cryptocurrencies, this will be the transformation of the collapsed signature bank

The collapsed Signature Bank, which along with two other companies marked the second largest bank failure in US history, was sold to Flagstar Bank for nearly $3 billion, but without its cryptocurrency business.

This was announced by the Federal Deposit Insurance Corporation (FDIC). a statement that Flagstar Bank, a subsidiary of New York Community Bancorp, reached an agreement to take over most of Signature Bank after its collapse.

Now most Former Signature customers are automatically transferred to Flagstar Bankand from today they would be served in the 40 branches of their old bank.

The FDIC clarifies that Flagstar Bank’s offering Around $4 billion in deposits, which were part of Signature Bank’s digital banking operations, were not included in the deal.

Cryptocurrency funds will remain in the hands of the regulator as it will be responsible for answering the queries of the owners of these digital assets.

What was included in the purchase transaction were $38.4 billion in assets, $25 billion in cash, $12.9 billion in loans and 40 former Signature stores.

Transformation of a bank: no longer so friendly with cryptocurrencies

The purchase transaction initiated “the transformation from a predominantly multi-family lender to a diversified full-service commercial bank”. called Thomas Cangemi, CEO of New York Community Bank.

For Cangemi, the transition that began with the merger between New York Community and Flagstar is accelerating. At the same time, he hopes they are “better positioned to deal with remaining market problems.”

As CriptoNoticias previously reported, some sources had warned that regulators would be asking investors interested in buying Signature Bank. to exit the cryptocurrency business.

An FDIC spokesman later denied that such an action was taken to condition the purchase of a bank.

Signature se earned the nickname “cryptocurrency-friendly” bankTherefore, several companies in the industry kept their assets in this entity. Among them was the Coinbase exchange; Circle, issuer of stablecoin USD Coin (USDC); ripple; and the Avalanche Foundation.

Before they were confiscated by New York State authorities, Signature’s cryptocurrency customers made up a quarter of their deposits. However, many of them looked for other alternatives. For example, Circle has chosen Cross River Bank among its partners to hold and redeem USDC

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