Signature Bank in particular served the likes of Paxos Trust and Celsius and other major crypto firms that suffered as a result of the decisions taken by the Federal Deposit Insurance Corporation and New York State Department of Financial Services.
Meanwhile Silicon Valley Bank (SVB) reportedly handled over $5 billion of funds for a handful of cryptocurrency venture capital funds including Andreessen Horowitz (a16z), Paradigm and Pantera Capital in recent years.
USD Coin (USDC) issuer Circle was directly affected by the closure of SVB, with $3.3 billion tied up in the bank after its closure. Cryptocurrency markets were directly affected, with USDC temporarily losing its peg to the US Dollars for a number of days.
Several high profile commentators in the U.S. have suggested that there is mounting pressure on banks to stop serving cryptocurrency-related businesses. Meanwhile a spokesperson from the FDIC has refuted claims that the future of sale to Signature Bank would not require divestment of crypto activities.
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