Customers of the failed Silicon Valley Bank will get access to their funds from Monday, the US regulators said in a joint statement this week.
“After receiving a recommendation from the boards of the Federal Deposit Insurance Commission (FDIC) and the Federal Reserve”, US Treasury Secretary Janet L. Yellen has “approved actions” enabling FDIC to complete its resolution of Santa Clara, California-based bank to fully protect “all depositors,” Treasury Secretary Yellen, Fed Chair Jerome Powell, and FDIC Chairman Martin J. Gruenberg said in a joint press release.
The statement added, “Today, we are taking decisive actions to protect the US economy by strengthening public confidence in our banking system.”
Crypto Market Gets Another Jolt After Signature Bank closure
The recent collapse of Signature Bank, which had numerous crypto companies as its customers, marked another major jolt for the crypto industry following the collapse of Silicon Valley Bank and Silvergate Bank.
Silicon Valley and Silvergate not just stored funds but allowed quick transactions between their clients, such as hedge funds and crypto exchanges, ensuring liquidity for the digital asset market.
Signature Bank had $16.5 billion in crypto-related client deposits as of March 8. It also ran a payment network called Signet that allowed commercial crypto clients to make real-time payments in dollars at any time, seven days a week.
After rival SEN Network’s shutdown in early March, Signet was the only player for many crypto customers for quick payments to exchanges and vendors, or payroll services. LedgerX, a crypto derivatives platform, earlier instructed clients to direct domestic wire transfers to Signature instead of Silvergate.
India’s Digital Rupee May Positively Affect Web 3.0 And Crypto Industry
The success of the international crypto ecosystem has reportedly created 200 million users worldwide, of which 10 per cent are Indians. However, despite the potential for India’s digital rupee, much preparation is still needed in terms of regulation, the Economic Times wrote. The government should “encourage this ecosystem in a compliant manner”, the report said. India-based exchanges witnessed a noticeable drop in trading volume after July last year, it said.