Crypto-friendly Signature Bank was shut down by the New York Department of Financial Services (NYDFS), marking the third bank collapse within a week after Silvergate Bank and Silicon Valley Bank (SVB). The announcement was made by the Federal Reserve (Fed), the central banking system of the U.S. More: - The move came right after Signature Bank experienced a steady outflow influx and a major stock selloff following the rising concerns caused by the collapse of SVB.
- Officials underlined that the step aims to protect depositors.
- In a joint statement, the Fed, the U.S. Treasury Department, and the Federal Deposit Insurance Corporation (FDIC) said no losses related to the bank would be incurred by the taxpayer, and all depositors would be paid whole.
- FDIC took the receivership of Signature Bank, and senior managers were discharged.
- Signature Bank had total assets of nearly $110.36B and total deposits of around $88.59B as of the end of 2022.
- The bank also had lots of crypto clients, and some of them, including Paxos, Coinbase, Circle, and Celsius, announced funds in Signature Bank.
Zoom Out: - In December 2022, Signature Bank said it would reduce its exposure to the crypto sector by $8B to $10B.
- Earlier in March, crypto-focused Silvergate Bank announced voluntary liquidation almost a week after it warned that it might not survive another 12 months since it might be less than well-capitalized.
- SVB, one of the U.S.' 20 largest banks, was closed by the California Department of Financial Protection and Innovation on March 10.
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HSBC, Europe's largest bank with $2.9T of assets, has acquired the collapsed Silicon Valley Bank's (SVB) British arm, SVB UK, for only £1. The bank aims to prevent further contagion for the U.K.-based crypto and tech startups by rescuing a key lender. More: - The Bank of England (BOE), the U.K.'s central bank, organized the sale.
- The country's finance minister, Jeremy Hunt, said some of England's most important and strategic companies could have been wiped out otherwise.
- BOE stated that deposits at SVB UK were safe thanks to the acquisition.
- HSBC said the parent company SVB's assets and liabilities were excluded from the transaction.
- SVB UK has deposits of £6.7B ($8.2B), loans of £5.5B ($6.7B), and a total balance sheet size of £8.8B ($10.7B), according to HSBC and BOE.
- HSBC shares declined by 1.7% following the announcement.
Zoom Out: - The California Department of Financial Protection and Innovation, the U.S. state's financial watchdog, shut down SVB on March 10.
- The bank was the 16th largest bank in the U.S. and provided banking services to several crypto and tech startups.
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U.S. President Joe Biden commented on the major crypto-friendly bank shutdowns on his official Twitter account, committing to holding those responsible for the collapses fully accountable. Biden's comments came right after successive collapses of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank within a week. More: - Biden also said all the deposits of Americans and the banking system are safe.
- According to the tweet, the Secretary of Treasury and the White House's National Economic Council Director worked with banking regulators to address problems at SVB and Signature Bank with Biden's direction.
- Biden added that he is pleased that the agencies have reached a solution that protects employees, small companies, taxpayers, and the U.S. financial system.
Zoom Out: - Earlier in March, a White House spokesperson said that the Biden administration was aware of the situation at Silvergate Bank and would monitor the news about the issue while speaking at a press conference.
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Binance, the world's largest crypto exchange by trading volume, has converted $1B worth of Binance USD (BUSD) stablecoin in its Industry Recovery Initiative Fund to native tokens. The move aims to support the crypto industry amid the rising concerns around the major crypto-friendly bank collapses. More: - Binance's action followed the consecutive collapses of crypto-friendly Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank within just a week.
- As part of the plan, $1B of BUSD was converted to Bitcoin (BTC), Ether (ETH), BNB coin (BNB), and several other tokens.
- Binance CEO Changpeng Zhao (CZ) tweeted that the transactions took 15 seconds and cost $1.29.
- BNB increased by over 10% following the move, reaching the highest levels in two weeks.
- The Federal Reserve (Fed), the central banking system of the U.S., also announced a $25B funding program to support banks and other depository firms by offering them loans for up to one year.
Zoom Out: - Binance launched its Industry Recovery Initiative in November last year to support major Web3 projects that experienced a liquidity crisis.
- The launch came right after popular crypto exchange FTX's bankruptcy, which triggered a prolonged crypto winter and collapsed many other crypto-related firms such as Genesis and BlockFi.
- Initial participants of the fund included Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group.
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The International Monetary Fund (IMF), a major financial agency of the United Nations (UN), warned the G20 countries about the widespread use of crypto assets. The warning was disclosed through a report of the agency that was recently made public. More: - The "Macrofinancial Implications of Crypto Assets" report was initially given to G20 countries in February during a meeting in India.
- In the report, the IMF warned that widespread crypto use could pose a risk to the effectiveness of monetary policy, exchange rate management, capital flow management measures, financial stability, and fiscal sustainability.
- The IMF's report also said banks could lose deposits and have to reduce lending due to increased use.
- The agency underlined that the significance and relevance of the specific risks related to the widespread use of crypto assets depend on the countries' circumstances.
- Besides, the document called for a move to fill the data gaps to make policymaking easier.
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The Pokémon Company, the Japanese firm behind the popular anime, hinted at its plans for a Pokémon-themed NFT collection or metaverse project by opening a new job posting. The vacancy was opened on the company's international job board. More: - The job opening seeks a corporate-level developer with deep knowledge and understanding of Web3, including blockchain technologies, NFTs, and/or metaverse.
- The position also requires the candidate to be deeply connected to a network of investors and entrepreneurs in the Web3 industry.
- The person chosen for the role will be responsible for creating new Pokémon experiences with the help of internal stakeholders and external co-developers.
- The role will be based in Bellevue, Washington, U.S.
- The Pokémon Company, or its parent companies Nintendo, Game Freak, and Creatures, has yet to confirm any plans toward an official NFT or metaverse project.
Zoom Out: - Last December, The Pokémon Company sued the Australian company Pokémon Pty Ltd over promoting an NFT-based Pokemon mobile game using its trademarks and assets.
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- Binance has launched a prepaid crypto card in Colombia in partnership with Colombian neo-bank Movii.
- The Federal Deposit Insurance Corporation (FDIC) stated that Silicon Valley Bank (SVB) depositors can now fully access their funds through a new bridge bank called Silicon Valley Bank N.A.
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 |  | Doga is a tech and science editor who has been writing news for nearly 10 years. She worked for leading tech platforms and mainstrem media channels as an editor and presenter throughout his career. Then, she carried her know-how to more than one platform. She is a part-time cat lover and binge-watcher, and also fond of science, space, and emerging tech. She always has a story to tell. She is a bit addict to the laughter and -unfortunately- the '90s culture. |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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